Strong US jobs data lifts greenback vs yen
* Safe haven trade diminishes, euro gains on U.S. dollar
* Euro down vs commodity currencies on euro zone crisis
* Aussie dollar climbs to fresh six month high.


By Daniel Bases
NEW YORK, Feb 3 (Reuters) - Robust U.S. jobs data
spurred investors to buy the U.S. dollar and sell yen on Friday
with the rosier economic report curtailing some expectations the
U.S. Federal Reserve will hold off raising interest rates until
2014.
The strong jobs data diminished the greenback's safe haven
status as investors took on more risk. The main beneficiary was
the euro where initial losses on the report were erased by the
end of trade despite the overhang of Europe's sovereign debt
crisis.
Data from the U.S. Labor Department showed 243,000 non-farm
jobs were created in January, its fastest pace in nine months,
pulling the unemployment rate to an unexpected three year low of
8.3 percent.
Friday's data erodes the argument for more economic stimulus
by the U.S. Federal Reserve and for some investors even
suggested the central bank could raise interest rates sooner
than the 2014 time period suggested in recent days.
"You get a couple of payrolls like this and (a rate
increase) is back to mid-2013 and that puts you inside the
two-year window where it will get priced in by the FX markets,"
said Greg Anderson G10 strategist at CitiFX, a division of
Citigroup in New York.
A separate report showing greater-than-expected expansion in
the U.S. services sector in January only added to the dollar's
allure..
Interest rate futures contracts expiring in April 2014
suggested a 36 percent chance of a rate hike by then, after
signaling no chance before the report. Most traders saw June as
the most likely month for a first rate hike. Before the report,
traders saw the first hike as most likely in August 2014.
While the dollar maintained its advantage against the yen
and Swiss franc, the euro clawed back to the break-even point by
the end of the day on greater risk tolerance, illustrated by a
rally in stocks and a plunge in U.S. Treasury prices.
The euro traded unchanged at $1.3145 late in the New
York session on Friday, having dropped as low as $1.3065 in the
initial sell-off on the strong jobs report.
Against the yen, the dollar rose 0.50 percent to 76.56, off
of Thursday's three month low of 76.02 and also away from
levels where Japanese officials have threatened intervention to
weaken their currency and ease the pressure on its key export
sector. The high on Friday of 76.22 marked a one week peak,
although the dollar is still near the all-time low of 75.311 hit
on Oct. 31.
Japanese Finance Minister Jun Azumi said on Friday that
speculative yen buying had gathered pace since last week and
repeated that he was ready to act decisively to counter
"one-sided" moves.
However, the unresolved Greek debt restructuring left the
region's currency at a deficit against the so-called commodity
currencies which benefit from stronger economic growth.
"Look at the euro/Aussie cross. There is no comeback there.
That is what I would isolate. It is a good reflection of, well,
yes the euro came back because the risk-on trade extended a
little further (against the U.S. dollar) but not against
Australia or Canada or New Zealand," said Anderson.
The Australian dollar climbed to a six-month high of
US$1.0794 in the New York session, and was last up 0.59 percent
at US$1.7074. The euro fell to a fresh all-time low against the
Australian dollar around A$1.2162, according to
Reuters data.

GREECE CONCERNS
Investors are still awaiting the outcome of talks between
Greece and its private creditors on a debt swap.
Greek officials have said repeatedly that a deal is near,
and European Union Economic and Monetary Affairs Commissioner
Olli Rehn reiterated on Thursday that it could be reached by the
end of the week.
"In the very short-term, people will be reluctant to take
positions in the euro as there is a lot of announcement risk
surrounding Greece," said Daragh Maher, currency strategist at
HSBC in London.
The euro hit a six-week high in the last week, stalling
ahead of resistance at $1.3235, the 38.2 percent retracement of
the euro's fall from October to January, using Reuters data.
Against the Swiss franc, the euro was up 0.23 percent at
1.2075 francs, close to the 1.2000 level the Swiss
National Bank has said it would defend at all costs.
Top Swiss politicians on Friday spoke out in favor of the
central bank's cap of 1.20 per euro on the Swiss franc, saying
it was the bare minimum needed to cushion the economy.