* Asian shares rise, helping cross-yen climb
* Dlr/yen up on short-covering before U.S. payrolls
* Yen dented by report saying BOJ to consider easing steps
(Repeats to fix formatting)
By Satomi Noguchi
TOKYO, March 5 (Reuters) - The yen slipped on Friday as
Asian shares climbed and China reaffirmed its easy monetary
stance, leading short-term players to buy higher-yielding
currencies.
The dollar rose against the yen and was supported versus
other major currencies as investors grew cautious about selling
the greenback too far on the view that some may previously have
been too pessimistic ahead of U.S. payroll numbers due later in
the day.
The dollar's move up against the Japanese currency was
helped by a report that the Bank of Japan was weighing further
easing measures, traders said. []
China's key stock index opened higher on Friday after
Premier Wen Jiabao said China would stick to an appropriately
easy monetary stance and a proactive fiscal policy.
[]
"Wen Jiabao's remarks reassured the market that China only
wants to rein in certain sectors, and that it does not intend to
put a strong brake on the economy," said Nobuhiko Akai, senior
manager of Bank of Tokyo-Mitsubishi UFJ's forex trading group.
Hong Kong and China stocks fell on Thursday as persistent
concern over policy tightening spurred investors to take profits
and prompted short-term players to cut risky positions in
higher-yielding currencies for the yen for its perceived safety.
The dollar rose 0.3 percent on the yen from late on Thursday
in New York to 89.28 yen <JPY=>, recovering from a 3-month low
of 88.14 yen struck on trading platform EBS the previous day.
Traders said the dollar's upside will likely be capped
around 89.50 yen, or the lower limit of the cloud on the daily
Ichimoku chart, before the U.S. jobs report.
The interbank cost of borrowing three-month dollar funds
edged higher on Thursday, while it fell for yen funds, taking
the Japanese currency rate below that of the greenback for the
first time since August. []
Some traders said that drop in three-month yen Libor may
have been another reason for the yen's weakness against the
dollar in late Thursday trade.
The euro remained on the defensive as a short squeeze in the
single currency appeared to have run its course, with investors
fretting about debt-laden Greece and Moody's cutting Deutsche
Bank's ratings. []
The euro stood at $1.3592 <EUR=>, edging up 0.1 percent. It
recovered a tad from its 0.8 percent loss the day before when it
moved in choppy trade following a robust response to a Greek
debt auction.
The euro gained 0.3 percent to 121.33 yen <EURJPY=R> and the
Australian dollar rose 0.2 percent to 80.39 yen <AUDJPY=R>.
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JOBS DATA
Traders said the market was likely to stay cautious ahead of
key U.S. payrolls data. Forecasts are for a cut of 50,000 jobs,
but many analysts warned the data was distorted by a wave of
snowstorms that hit the United States <ECON>.
"Weather is really the X-factor there and the data could
throw up anything," said Jonathan Cavenagh, currency strategist
at Westpac.
"The market is bearish on the numbers, so any upside
surprise could actually lift the U.S. dollar. Also, Greece
worries continue and with investors still cautious about risk, I
would have a bias towards the U.S. dollar ahead of the payrolls
data."
The dollar index <.DXY> was steady at 80.52, with near-term
resistance seen around 81.30, this week's high.
Investors also fretted about whether Greece's fresh plans to
address its debt woes would win wider support in the European
Union ahead of a meeting of German Chancellor Angela Merkel with
the Greek prime minister later on Friday. []
Greece announced plans on Wednesday for a further $6.5
billion in public sector pay cuts and tax hikes to whittle its
budget deficit.
(Additional reporting by Anirban Nag in Sydney, Kaori Kaneko in
Tokyo; Editing by Hugh Lawson)
