Dollar ticks up after drop on weak jobs data

The dollar notched up modest gains Thursday after tumbling on weak US jobs data and a warning from Federal Reserve Chair Janet Yellen that stock markets were at risk of overheating.

In Tokyo afternoon trading, the greenback fetched 119.49 yen, slightly up from 119.44 yen in New York.

The euro was mixed at $1.1343 and 135.60 yen, compared with $1.1348 and 135.54 yen in US trade, as traders keep a close eye on tense Greek bailout talks.

Payroll firm ADP reported that the world's top economy added just 169,000 private-sector jobs in April, the second month in a row under 200,000, as the oil sector downturn continued to pinch the labour market.

The figures came ahead of Friday's highly-anticipated Labor Department jobs report. A weak reading may further cloud the timing for a widely-expected Fed interest rate hike this year.

"Some hopes that the jobs market remained healthy were dashed by the private employment report and that hit those with long dollar positions," said Keisuke Hino, a foreign-exchange trader at Mizuho Bank in New York.

"At the same time, rising yields may boost appetite for the dollar for Japanese as they return from holidays," he told Bloomberg News.

Japanese financial markets were closed from Monday to Wednesday for public holidays.

In the US, Fed chair Janet Yellen, speaking at a Washington conference, warned that "equity market valuations at this point generally are quite high".

"There are potential dangers there," she added.

In other trading, the pound fetched $1.5241, slipping from $1.5247 in US trade, as Britain goes to the polls Thursday in the closest general election in a generation.

The election looks set to deliver a minority government for the first time since 1974 but could also push Britain closer to leaving the European Union and hasten Scottish independence.

"Even if the status quo gets up, there may be a referendum on the UK remaining part of the EU," National Australia Bank said in a commentary.

"All of this is fodder for market uncertainty and risk aversion."

Traders were also keeping a close eye on the tense situation in cash-strapped Greece, after the European Union and International Monetary Fund hit back Wednesday at accusations by Athens that internal rifts were blocking a bailout deal.

The dollar mostly strengthened against other Asia-Pacific currencies.

It rose to 1,090.65 South Korean won from 1,080.72 won on Wednesday, to Tw$30.69 from Tw$30.63, to Sg$1.3285 from Sg$1.3283, to 44.65 Philippine pesos from 44.52 pesos, and to 33.37 Thai baht from 33.27 baht.

The dollar also inched up to 63.85 Indian rupees from 63.59 rupees and to 13,093 Indonesian rupiah from 13,037 rupiah.

The Australian dollar edged higher to 79.91 US cents from 79.61 cents while the Chinese yuan slipped to 19.26 yen from 19.32 yen.