Dollar Nearing 1990's Levels Versus Yen, At Record Low Versus Euro Ahead Of Jobs Report [EUR/USD]

The dollar stayed on the defensive versus other major currencies Friday morning morning in New York, dropping to new long-term lows against the euro and yen while losing further ground to the sterling. At 8:30 am ET, the Labor Department releases its monthly employment report for February.
Nonfarm payroll employment surprisingly fell for the first time in over four years in January, while the unemployment rate edged down to 4.9 percent from 5.0 percent in December. More recently, initial unemployment claims suggest that employment is continuing to soften but not dramatically.
Analysts expect nonfarm payrolls to increase by 25,000, although there is a wide range among analysts ranging from -50,000 to + 50,000. The unemployment rate is expected to edge back up to 5.0 percent.
The dollar plunged to a multi-year low against the yen after the Bank of Japan's Board of Governors voted to leave the overnight call rate unchanged at 0.5 percent for the 15th consecutive month.
Most analysts believe that the bank will not be able to raise interest rates for at least the remainder of 2008 - and it is becoming increasingly likely the bank may trim the rate within the next couple of months.
The dollar hit a fresh 3-year low of 101.90 versus the yen. A weak jobs number could send the dollar below 101.67 to its lowest level since 1999. A move below 101.23 would take the dollar to its lowest since 1995.
The dollar sank to another record low versus the euro overnight, dropping to 1.5429 before stabilizing ahead of the US jobs numbers. The greenback slipped to its lowest point since just before Christmas versus the sterling Friday morning. The buck eased to 2.0158, extending its dramatic month-long decline.
The European Central Bank and Bank of England left interest rates unchanged on Thursday, with inflation concerns overriding evidence of economic weakness.