* Dollar up vs yen ahead of non-farm payrolls
* Upbeat global mood helps commodity bloc of currencies
* Sterling inches lower at end of rough week
* Graphic: World FX rates in 2017 tmsnrt.rs/2egbfVh
By Patrick Graham
LONDON, June 2 The dollar recovered more ground
against the yen on Friday ahead of U.S. jobs data that should,
judging by the rhetoric of U.S. central bankers, cement a rise
in Federal Reserve interest rates later this month.
With the mood on global stock markets broadly buoyant, the
commodity-price-dependent bloc of currencies led by the
Australian and Canadian dollar were 0.1-0.3 percent higher.
Sterling was down 0.2 percent but still looking steadier,
almost a cent above this week’s lows against the dollar
and half a penny off Wednesday's 2-1/2 month low against the
"The move this morning is in dollar yen," said Niels
Christiansen, a strategist with Sweden's Nordea Bank.
"Good numbers yesterday and the record highs in equities if
anything are dollar positive. The data hasn't done a great deal
for the dollar recently but we'll certainly be looking at the
wage numbers today - that is crucial for inflation and the rate
The dollar hit 111.680 yen, its highest since May 26,
in early trade in Asia before slipping back to 111.520, a 0.2
percent gain on the day. It was flat at $1.1212 per euro.
The past fortnight has been the worst in over a year for the
greenback against the euro and the basket of currencies used to
measure its broader strength, a reflection of shakier U.S.
economic data and concerns over the Trump's administration's
ability to deliver a substantial boost to growth.
In broader terms, it has been rallying off and on for the
best part of two years on the assumption that U.S. interest
rates would continue to rise while those in Japan and Europe
stayed below zero.
Yet while markets have fully priced in another Fed hike in
two weeks, expectations for the rest of the year are now
"We suspect it will take a significant deviation from
consensus in earnings – confirmed in subsequent releases – to
give the dollar any sustained momentum," analysts from Credit
Agricole said in a morning note to clients.
For Reuters Live Markets blog on European and UK stock
markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets
(Writing by Patrick Graham; Editing by Alison Williams and