(Corrects 5th paragraph to show dollar, not yen, gain)
* Dollar/yen slips following 4 percent rise
* BOJ's Kuroda gives no clear hint on imminent easing
* US jobs data doesn't rule out Fed rate hike hopes
* Sterling hits 7-week high after services PMI
By Jemima Kelly
LONDON, Sept 5 The dollar fell against the yen
on Monday, after the head of the Bank of Japan disappointed
those investors who had expected a clear signal that monetary
policy would be eased further this month.
The greenback hit a five-week high on Friday as markets bet
that the U.S. Federal Reserve was still likely to raise interest
rates in the coming months, despite disappointing U.S. jobs
But having gained more than 4 percent against the Japanese
currency in six days, the dollar stalled on Monday, slipping
more than 0.8 percent as markets digested BOJ Governor Haruhiko
Kuroda's comments, to 103.15 yen.
Though Kuroda signalled his readiness to further expand an
already massive stimulus programme, he did not provide the
explicit hints that some had been waiting for on the chances of
the BOJ aggressively easing policy at its next review on Sept.
From Zurich, UBS's head of currency strategy Constantin Bolz
said the factors that had driven the dollar higher against the
yen - namely growing expectations of a Fed hike in September and
bets on imminent further BOJ easing - had faded somewhat, but
that a fall-back was not surprising given the rapidity of the
"We shouldn't forget that we were at 100 yen ten days ago,"
"The (U.S.) labour market wasn't great ... so that took out
a bit of steam from the dollar side, and then Kuroda didn't say
anything too clear about further easing at the end of September
and so now markets have to level out their bets a little bit."
Data from the U.S. Commodity Futures Trading Commission
released on Friday showed that currency speculators increased
their bets on the yen in the week ending Aug. 30, but had cut
their long U.S. dollar bets to an 8-week low.
The dollar index, which measures the greenback against a
basket of six major currencies, stood at 95.700, managing
to stay above a one-week low of 95.189 set on Friday just after
the U.S. payrolls data.
Nonfarm payrolls rose by 151,000 jobs last month, below the
180,000 jobs that economists had expected.
"The key test was always going to be last Friday's jobs
report and the data has, perhaps just about, kept September
alive as a possibility for a rate increase," wrote Bank of
Tokyo-Mitsubishi UFJ currency strategists in a note to clients.
Markets are now pricing in just over a 1 in 5 chance that
U.S. rates will be incresed in September, and a just over 50
percent chance that they will be hiked by the end of the year -
down from around a 55 percent chance priced in last week before
the jobs data, according to CME FedWatch.
Sterling hit a seven-week high after a monthly
purchasing managers' index (PMI) survey of Britain's dominant
services sector rebounded, with a record jump.
For Reuters new Live Markets blog on European and UK stock
markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets
(Additional reporting by Masayuki Kitano in Singapore and
Hideyuki Sano in Tokyo; Editing by Richard Balmforth)