* Aussie jumps after jobs data boosts rate hike prospects
* Euro also lifted by gains in Aussie
* APEC ministers to call for "market-oriented" forex rates
* Sterling remains under pressure after BoE comments
By Kaori Kaneko
TOKYO, Nov 12 (Reuters) - The dollar was on slippery ground
on Thursday after the Australian dollar jumped to a 15-month high
on strong jobs data that boosted expectations of an interest rate
hike next month.
The Aussie was also buoyed by firm commodity prices like
gold, which hit a record high for the second straight day. []
The dollar was under pressure on expectations that
Asia-Pacific finance ministers gathered in Singapore ahead of a
summit of their national leaders this weekend were set to call
for flexible exchange rates.
The latest draft communique to be issued following their
meeting on Thursday calls for "market-oriented" exchange rates
and interest rates. []
"The dollar is likely to keep facing selling pressure during
the APEC finance ministers meeting," said a trader for a Japanese
trust bank.
The 21-member Pacific Rim group includes China, which is
under pressure, particularly from the United States, to allow its
currency to rise.
Dealers said they were watching further developments after
China said it would consider using a basket of currencies, not
just the dollar, in guiding the exchange rate of the Chinese yuan
<CNY=>, its clearest signal yet that it was close to letting the
yuan appreciate after an 18-month hiatus. []
The dollar index <.DXY>, a gauge of the greenback's
performance against six major currencies, was at 75.032, down 0.2
percent on the day. The index on Wednesday hit a fresh 15-month
low of 74.774.
AUSSIE JUMPS ON RATE OUTLOOK
The euro and yen crosses trimmed earlier gains made in tandem
with the Aussie's rise after regional stock markets turned
negative. But they held firm as traders waited to see if European
and U.S. players push the dollar down further when they join the
market later in the day.
Sterling stayed under pressure following comments on its
weakness by the Bank of England governor.
"The euro so far has failed to rise well above $1.5000 and
stay in higher ranges. So the dollar index, with the euro being
the biggest component, may hold from further falls," said Ayako
Sera, market strategist at Sumitomo Trust & Banking.
The euro was flat at $1.4990 <EUR=>. It had risen as far as
$1.5049 on trading platform EBS the previous day.
Against the yen, the dollar edged down 0.1 percent to 89.80
yen <JPY=>. The euro was steady at 134.63 yen <EURJPY=R>, off an
earlier high of 135.02 yen on EBS.
Dealers said the broad market trend remained for dollar
weakness on the view that the United States will keep interest
rates low well into next year. That has led investors to use the
greenback as a funding currency to invest in higher yielders and
commodities.
The Aussie rose after stronger-than-expected Australian
employment data for October, fuelling bets for another interest
rate hike by the Reserve Bank of Australia in December.
[] []
"It certainly counts toward another rise of 25 basis points
in December. The Reserve Bank will surely be keen to remove more
of this emergency stimulus," said Felicity Emmett, a senior
economist at RBS.
The Aussie was trading around $0.9333 <AUD=D4> after touching
$0.9370 <AUD=D4>, its highest since August 2008.
Sterling was weighed down below the $1.6600 <GBP=D4> level.
It had tumbled more than 1 percent on Wednesday when Bank of
England Governor Mervyn King said pound weakness would help
British exporters and aid economic recovery.[]
(Additional reporting by Satomi Noguchi; Editing by Chris
Gallagher)
