Investing.com - The dollar pushed higher against the yen on Thursday as investors looked ahead to a flurry of U.S. data later in the day, including the closely watched government nonfarm payrolls report, which could underline expectations for a rate hike.
USD/JPY was up 0.19% to 123.40, off Wednesday’s lows of 122.35.
The dollar was boosted after data on Wednesday showed that the U.S. private sector added the most jobs in six months in June and manufacturing activity also picked up.
Payroll processing firm ADP said nonfarm payrolls rose by 237,000 last month, compared to expectations for jobs growth of 218,000.
In a separate report the Institute for Supply Management said its manufacturing index rose to 53.5 last month from 52.8 in May. Analysts had expected a more modest uptick to 53.1.
The reports indicated that the economy is gaining momentum after a weak first quarter.
Investors were looking to the latest employment report for signs of improvement in the labor market, which the Federal Reserve has said is a key factor in deciding when to start hiking interest rates.
The report was being released one day ahead of schedule as U.S. markets were to be closed on Friday for the July 4 holiday.
The dollar was slightly lower against the euro, with EUR/USD up 0.24% to 1.1077.
In Greece, Prime Minister Alexis Tsipras on Wednesday urged voters to reject the terms proposed by lenders for extending the country’s bailout ahead of Sunday’s referendum.
Greece became the first developed country to default on the International Monetary Fund after its second bailout program expired late Tuesday.
European leaders have said the referendum is ultimately a vote on whether to remain in the euro zone.
The euro was also higher against the yen, with EUR/JPY rising 0.38% to 136.66.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, eased to 96.39.