Potential dollar sell-off mooted

The potential for a concerted sell-off of the US dollar has increased today (February 3rd) after analysts have claimed worse-than-expected jobs data could lead to a significant fall for the currency against the Japanese yen.

As a result, support for the yen by Japanese authorities could be forthcoming to maintain the currency at a perceived key level of 76 yen to the dollar, the Wall Street Journal reports.

"Attention will need to be paid to risks of sharp falls in US long-term bond yields and the dollar/yen, especially if the unemployment rate climbs contrary to expectations," commented Masafumi Yamamoto, chief FX strategist at Barclays Capital in Tokyo.

US stock markets had a torrid day in trading yesterday, as indices fell after rumours emerged regarding the likelihood of weak jobs data in the country.

As such, the S&P 500 dipped by 0.2 per cent, the Dow Jones Industrial Average was down by 0.1 per cent and the Nasdaq 100 future market saw a 0.1 per cent decline.