The U.S. Dollar gained against the Japanese Yen in early Monday morning trading in Tokyo, because of strong demand from Japanese importers and short-term traders who are worried about the surging cost of materials, including crude oil.
On June 10, 2008 at 09:55 am (00:55 GMT) the U.S. Dollar traded at 105.70 Yen, compared to 104.86 Yen, while the Euro traded at $1.5765 compared to $1.5774 in late trading in New York on Friday.
Analysts are predicted that the near term outlook of the U.S. dollar does not look because of the latest data on the unemployment rate in May. According to the U.S. data, the unemployment rate jumped from 5% in April to 5.5% in May, which is much higher than the 5.1% predicted b y several economists. The May unemployment data is the largest increase in the unemployment rate in 22 years. In May, the U.S. economy shed 49,000 jobs compared to 60,000 job losses expected by most economists. However, investors sold off the U.S. currency primarily because of the unemployment data.
Investors are predicting that, based on the negative job data, it is very likely that the Federal Reserve will have no choice but to increase interest rates soon.