2018.06.0503:03:00UTC+00Euro Gets Boost from Ebbing Italy Worries; Dollar Strengthens Against Yen

The euro received support form indications of political stability in Italy and the dollar continued its upward trend versus the yen after a strong U.S. jobs report that bolstered bets of three more U.S. rate increases by the end of the year.

In early Asian trade, the single bloc currency traded almost unchanged at $1.1687, after hitting $1.745 in the prior day, its highest level since May 24.

The big spending plans of the new coalition government formed by two anti-establishment parties have raised some worries, but the new Economy Minister Giovanni Tria has stated that none of the parties want to depart from the eurozone and neither does he seek to.

The euro advanced to 128.50 yen, up 3.0 percent from an 11-month trough of 124.82 yen, touched a week ago.

The dollar traded at 109.95 yen, up 0.1 percent and continuing its recovery from a five-week low of 108.115 yen reached on Tuesday. The dollar received support from the strong U.S. employment data published on Friday that revived bets that the Federal Reserve will lift interest rates three more times this year. The Fed is widely anticipated to raise rates at its policy meeting next week, after a rate hike in March.

But market participants cautioned that the U.S. currency's rally could be sidetracked if concerns about a trade war between the U.S. and other developed economies escalated.