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IMM currency futures lower in early trade

CHICAGO: Most IMM currency futures stayed lower on Friday after strong US jobs data buffeted March yen and euros in active choppy dealings, traders said.

The U.S. Labour Department said nonfarm payrolls rose 315,000 in December versus forecasts for a 224,000 rise and hourly wages rose 0.4 percent versus an expected 0.3 percent gain. The jobless rate was steady at 4.1 percent, as expected.

March yen firmed to a pit high at $0.009623 and the March euro to $1.0368 as U.S. stocks and bonds jerked lower initially after the data. U.S. stocks and bonds quickly stabilised and the major currencies fell back from the early peaks.

"Our economy is still very strong," a currency futures trader at the Chicago Mercantile Exchange said. "(Currency futures) are just basically floundering."

March yen broke intraday support at $0.009600 and support at $0.009555. Further support was seen near $0.009495, the Oct. 13 low. Yen futures were most active, followed by euro, sterling, Swiss franc and Canadian dollar contracts, traders said.

Overnight, Finance Minister Kiichi Miyazawa said Japan would need to intervene in the foreign exchange market if any rapid movements were detected. He also said a strengthening of the yen beyond 100 yen per dollar was undesirable.

Vice Finance Minister Haruhiko Kuroda said that the current yen level was still excessive versus the dollar. He also said that a correction of excessive yen strength had started and he hoped that trend would continue for a while.

Deputy finance ministers from the Group of Seven industrialised nations are scheduled to meet this weekend. The G7 ministers are scheduled to meet in Tokyo in two weeks.

March euro failed to hold opening gains as U.S. equities recovered. The contract sank to $1.0305, then pared losses.

Large size selling pressured March sterling to $1.6400 and March Canadian dollars fell to a near two-week low at $0.6850.

March yen was off $0.000038 at $0.009540, euros off $0.0012 at $1.0337, Swiss francs off $0.0022 at $0.6450, sterling off $0.0068 at $1.6408, Canadian dollar off $0.0008 at $0.6856, Australian dollars off $0.0018 at $0.6539 and Mexican pesos up $0.000425 at $0.102650.-Reuters