* US dollar rebounds after slumping to 15-year low vs yen
* Oil slips after earlier 5-month high on weak dollar
* Treasuries eke gains on uncertain payrolls report
* Global stocks slip on dollar despite Fed easing view
(Adds close of U.S. markets)
By Herbert Lash
NEW YORK, Oct 7 (Reuters) - The U.S. dollar rebounded after
sliding to a 15-year low versus the Japanese yen and commodity
prices erased gains that pushed gold to yet another new high on
Thursday as traders bet momentum had swung too far, too fast.
Oil slipped from a five-month high above $84 a barrel,
copper tumbled and gold, on course for its largest one-day
slide in a month, extended losses as the dollar strengthened.
For details see:[] [][]
The dollar slumped to an all-time low against the Swiss
franc while the Australian dollar surged to a 27-year high
against the U.S. currency, driven by expectations the Federal
Reserve will boost money supply to help the anemic economy.
Earlier in Europe, the Bank of England and the European
Central Bank both held interest rates pat, reinforcing the
notion the Fed is closer to further quantitative easing than
other central banks, a move that would knock the dollar lower.
The dollar <JPY=> fell below 82.87 to the yen, about the
level that led the Bank of Japan to intervene in markets on
Sept 15 for the first time in six years, while the euro rose
above $1.40 <EUR=> before easing some of its gains.
"It's been the same story, the dollar goes down, assets are
all inflated -- gold, oil, stocks," said Joe Saluzzi,
co-manager of trading at Themis Trading in Chatham, New
Jersey.
Global stocks mostly edged lower with the exception of the
tech-rich Nasdaq, which eked out a small gain, as investors
took stock of the currency rout and whether it contradicted
economic fundamentals. []
The Dow Jones industrial average <> closed down 19.07
points, or 0.17 percent, at 10,948.58. The Standard & Poor's
500 Index <.SPX> was down 1.91 points, or 0.16 percent, at
1,158.06. The Nasdaq Composite Index <> was up 3.01
points, or 0.13 percent, at 2,383.67.
Trading in Tokyo was poised to open lower, with the
December futures contract that trades in Chicago for the Nikkei
225 <0#NK:> down 25 points at 9,680.
Investors turned cautious after PepsiCo Inc <PEP.N> trimmed
the top end of its full-year earnings forecast and ahead of key
U.S. jobs data on Friday, which is expected to non-farm
payrolls were unchanged in September. []
The thinking is a weak report would spur the Fed to embark
on a new stimulus program for the economy.
"This one unfortunately gets into the realm of economic
psychology," said Quincy Krosby, market strategist at
Prudential Financial in Newark, New Jersey.
Oil prices fell almost 2 percent as a recovery by the
dollar prompted commodities investors to book profits ahead of
the U.S. jobs report. []
U.S. crude for November delivery settled $1.56 lower at
$81.67 a barrel, after hitting a session peak of $84.43.
ICE Brent in London ended down $1.63 to $83.43 a barrel.
"Crude futures prices are coming back down to earth in a
delayed reaction to the bearish government report of a large
build in crude inventories last week," Phil Flynn, analyst at
PFGBest Research in Chicago, said.
Gold retreated 2 percent from a new record high of
$1,364.60 an ounce when the euro rose at one point to an
eight-month high above $1.40.
U.S. gold futures for December delivery <GCZ0> settled down
$12.70 at $1,335. Volume was the highest since late July.
Prices of short-dated U.S. Treasuries gained slightly on
expectations that Friday's U.S. payrolls data will auger for
further quantitative easing by the Fed. []
Data showing new U.S. claims for unemployment benefits
unexpectedly fell last week to the lowest in nearly three
months did not alter the view the economy is struggling.
"People are speculating that tomorrow's number could be
weak enough to validate the speculation about quantitative
easing," said David Coard, head of fixed income sales and
trading at Williams Capital Group in New York.
The two-year Treasury note <US2YT=RR> yield marked a record
low, dipping to 0.36 percent from Wednesday's finish near 0.39
percent.
The benchmark 10-year U.S. Treasury note <US10YT=RR> was up
2/32 in price to yield 2.38 percent.
The dollar was up against a basket of major currencies,
with the U.S. Dollar Index <.DXY> up 0.08 percent at 77.445.
The euro <EUR=> was down 0.14 percent at $1.3916. Against
the yen, the dollar <JPY=> was down 0.59 percent at 82.42.
The MSCI index of Asia Pacific stocks outside Japan was up
0.2 percent <.MIAPJ0000PUS> to the highest since June 2008.
Japan's Nikkei share average <> slipped 0.1 percent but
for the week was still up about 3 percent.
(Reporting by Angela Moon, Steven C. Johnson, Gene Ramos,
Ellen Freilich and Frank Tang in New York; Writing by Herbert
Lash, Editing by Chizu Nomiyama)
