* DXY on track for modest weekly gain
* Euro slumps after dovish hints from ECB's Draghi
* March jobs report expected to show a rise of 180,000
TOKYO, April 7 The dollar edged up on Friday, on
track for modest weekly gains, as investors nervously waited on
the outcome of talks between the U.S. and Chinese presidents and
ahead of a monthly jobs report that could back views for more
U.S. interest rate hikes.
The dollar index, which gauges the greenback against a
basket of six major rivals, added 0.1 percent to 100.73,
up 0.4 percent for the week.
Against its Japanese counterpart, the dollar edged up 0.1
percent to 110.92 yen, down 0.4 percent for the week.
Later on Friday, the U.S. nonfarm payrolls report is
expected to show an increase of 180,000 jobs in March, compared
with 235,000 in February, according to economists polled by
Reuters, which could reinforce expectations that the Federal
Reserve will deliver two more interest rate increases this
Markets are also squarely focused on U.S. President Donald
Trump's first meeting with Chinese President Xi Jinping, with
trade and North Korea's military program in focus.
"I think the market has no strong expectations from the
U.S.-China summit," said Masashi Murata, senior currency
strategist at Brown Brothers Harriman in Tokyo.
"I think the dollar will move flatly today, ahead of the
U.S. jobs data, with the situations with North Korea and Syria
contributing to risk-off sentiment," he said.
Trump said on Thursday that "something should happen" with
Syrian President Bashar al-Assad after a deadly poison gas
attack in that country, as the Pentagon and the White House
studied military options.
The U.S. president has also warned that he would be ready to
act unilaterally to address North Korea's nuclear program if
China does not step up to help in the matter.
Trump's domestic policy agenda was put in the spotlight on
Thursday, when U.S. House of Representatives Speaker Paul Ryan
said tax reform would take longer to accomplish than healthcare
reform. Ryan said that Congress and the White House were
initially closer to agreement on healthcare legislation than on
Currency policy was also in focus, after an administration
official told Reuters that "misalignment" was seen as more
significant than "currency manipulation" as a cause of trade
"Currency misalignment is different from currency
manipulation and currency undervaluation," the official said.
"So we want to see a process of analysing currency situations
that includes whether it's misaligned, not just whether it's
devalued or manipulated."
The euro was flat on the day at $1.0643, after dovish
comments from European Central Bank President Mario Draghi
helped push it to a three week low of $1.0629 overnight. It was
down 0.1 percent for the week.
Draghi said on Thursday that he does "not see cause to
deviate" from the ECB's stated policy path, which includes bond
buying at least until the end of the year and record-low rates
until well after that to stimulate inflation.
(Reporting by Tokyo markets team; Editing by Shri Navaratnam)