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FOREX-Dollar firm after jobs data supports U.S. rate hike view

Published 10/08/2015, 10:26 am
Updated 10/08/2015, 10:36 am
© Reuters.  FOREX-Dollar firm after jobs data supports U.S. rate hike view
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* Dollar index trading just shy of nearly 4-month high

* 125 seen as USD's near-term top vs JPY - strategist

* Net long dollar positions highest since June - IMM data

By Lisa Twaronite

TOKYO, Aug 10 (Reuters) - The dollar remained close to a nearly four-month high against a basket of currencies in early Asian trade on Monday, after solid U.S. jobs data backed expectations that the U.S. Federal Reserve was on track to raise interest rates as early as September.

The dollar index .DXY was up about 0.1 percent at 97.631, after rising as high as 98.334 on Friday, its highest since April 23, after data showed U.S. nonfarm payrolls rose 215,000 last month.

That fell short of expectations for a rise of 223,000 jobs but was still viewed as consistent with a strong labour market, and the previous two months were upwardly revised.

The dollar rose to a two-month high of 125.07 yen JPY= on Friday, and was last up about 0.1 percent at 124.33.

Marc Chandler, global head of currency strategy at Brown Brothers Harriman, said that 125 was a near-term top as the U.S. unit has only closed above that level once since early June, despite multiple attempts.

"Initial support is seen near 124.00 yen, which also corresponds to the 20-day moving average. Look for better dollar buyers on a move toward 123.20 yen," Chandler said in a note.

The euro edged down about 0.1 percent to $1.0959 EUR= .

As a spate of solid U.S. economic data has heightened expectations that the U.S. central bank is poised for a hike, speculators increased bullish bets on the greenback to their highest since early June, according to Reuters calculations and data from the Commodity Futures Trading Commission released on Friday.

The value of the dollar's net long position climbed to $32.77 billion in the week ended Aug. 4, from $29.79 billion the previous week.

The Swiss franc, meanwhile, was flat from late North American levels, with the dollar buying 0.9833 franc CHF . On Friday, the dollar rose as high as $0.9885, its loftiest peaks since late March. (Editing by Kim Coghill)

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