By Stanley White
Dec. 3 (Bloomberg) -- The dollar traded near a five-week low against the yen before reports that will probably show U.S. companies accelerated job cuts as the world’s largest economy grapples with a recession.
The dollar also declined against the South Korean won as General Motors Corp. told U.S. lawmakers it will run out of money this month unless Congress gives it $4 billion. The euro and the pound fell against the greenback on speculation central banks in the euro-area and the U.K. will lower interest rates at meetings tomorrow.
“There is a risk that the dollar will go lower,” said Tokichi Ito, deputy general manager of foreign exchange in Tokyo at Trust & Custody Services Bank Ltd., a unit of Japan’s second- largest publicly traded lender. “Disappointing economic data would highlight the extent of the U.S. recession and undermine confidence in buying the dollar.”
The dollar traded at 93.02 yen as of 9:33 a.m. in Tokyo from 93.18 late yesterday in New York, when it fell to 92.63, the lowest since Oct. 28. The euro bought $1.2700 from $1.2714. The euro was quoted at 118.15 yen from 118.44 yen. The dollar may decline to 92.50 yen today, Ito said.
ADP Employer Services will report at 8:15 a.m. New York time that companies cut 205,000 jobs last month, following a reduction of 157,000 in October, according to a Bloomberg News survey of economists. Payrolls including government employees shrank by 325,000 workers in November, the biggest one-month drop since the 2001 terrorist attacks, a separate survey showed before the Labor Department’s Dec. 5 report.
To contact the reporter on this story: Stanley White in Tokyo at swhite28@bloomberg.net
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