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Euro flat ahead of US jobs data

Tokyo - The euro was flat against major currencies in Asia on Friday as markets awaited key US jobs data, after the unit gained on the European Central Bank's measures to shore up financial institutions.

The single currency traded at $1.3430 in Tokyo trade against $1.3433 in New York late on Thursday. It was at ¥102.86 compared to ¥103.03.

The dollar inched down to ¥76.60 from ¥76.69.

Markets were cautious ahead of Friday's US nonfarm payrolls data, as investors look for an indication of the health of the world's biggest economy, said Gen Kawabe, senior dealer at Chuo Mitsui Trust and Banking.

BNZ FX Strategist Mike Burrowes told Dow Jones Newswires: "We are now shifting our attention to the US economy, which we have kind of forgotten about."

Global stock markets and risk-sensitive currencies got a boost overnight after the ECB announced measures to bolster eurozone banks that are under pressure from the public debt crises in Greece, Ireland and Portugal.

The ECB opened two longer-term new lines of credit for banks and pledged to buy up to €40bn of bank bonds backed by collateral, starting in November, as it looked to soothe jittery financial markets.

Traders regained their risk appetite as the decision helped ease worries that the eurozone sovereign debt crisis would cripple the financial system and the broader global economy.

Britain's central bank, the Bank of England, announced it would inject £75bn into the stalled economy to stimulate growth.

Also positive for the euro were remarks by European Commission head Jose Manuel Barroso that efforts are under way for coordinated action by the 27 European Union states to recapitalise banks.

"We are now proposing to the member states to have a coordinated action to recapitalise banks and get rid of toxic assets they may have," Barroso said in an interview with Euronews TV.

The market moved little after the Bank of Japan said its board voted unanimously to keep its key rate unchanged between zero and 0.1% as it continued with earlier measures to help safeguard Japan's fragile recovery.

It also extended by six months a ¥1.0 trillion loan programme for financial institutions in areas affected by the March 11 earthquake, up to the end of April 2012, in a bid to support rebuilding efforts.

The dollar was lower against other Asian currencies as risk appetite crept back.

It retreated to Sg$1.2946 from Sg$1.3034 on Thursday, to 1 178.90 South Korean won from 1 189.68 and to Tw$30.52 from Tw$30.61.

The unit also fell to 43.51 Philippine pesos from 43.76, to 8 955.00 Indonesian rupiah from 8 995.00 and to 30.87 Thai baht from 31.11.

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Rand - Dollar
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