jobs data test for dollar as euro struggles

* greenback index hovers at 11-year high, jobs information next check

* monetary unit still troubled while ECB goes negative on yields

* ECB starts bond shopping for next week, lifts economic outlook


SYDNEY, March vi (Reuters) - The greenback hovered at 11-year highs against a basket of major currencies too soon Fri and will extend gains if non-farm payrolls due later within the day support the case for an increase in U.S. interest rates in coming back months.

Analysts polled by Reuters expect U.S. payrolls to own accrued 240,000 last month and therefore the unemployed rate to own ticked all the way down to five.6 % from five.7 percent.

Such associate outcome may "spur an additional decline in EUR/USD because it fuels bets for a mid-2015 Fed rate hike," aforesaid David Song, a currency analyst at DailyFX.

The greenback index listed at ninety six.335, having climbed as way as ninety six.593 - a high not seen since Gregorian calendar month 2003. abundant of the move was as a result of persistent weakness within the monetary unit, that stayed besieged once {the monetary unitpean|the ecu|the eu} financial institution aforesaid it'd embark its one trillion euro bond-buying program next week.

ECB President Mario Draghi stunned some by language the financial institution would be ready to shop for bonds with negative yields of up to twenty basis points, triggering a giant rally in monetary unit zone bonds.

The yields news overshadowed upgrades to the ECB's forecasts for economic process.

"Our expectation is that the initiation of the bond purchases can facilitate weaken the monetary unit over consecutive few weeks, preponderantly through the charge per unit channel," analysts at CitiFX wrote in a very note to shoppers.

The monetary unit skint below $1.1000 for the primary time since Gregorian calendar month 2003, however has since drifted back to $1.1030. Traders aforesaid the currency was susceptible to a check of $1.0500, a trough seen in March 2003.

Against sterling, the common currency hovered simply higher than a seven-year low of seventy two.18 pence. It conjointly struggled at 132.50 yen, close to its lowest in a very month.

Commodity currencies fared badly, junction rectifier by a steep fall within the New Sjaelland greenback. The kiwi began to wilt in Asia on Thursday and accelerated its decline long as stop-loss commerce was triggered.

Traders noted the kiwi's underperformance began once New Zealand's financial institution aforesaid it absolutely was considering forcing banks to carry additional capital to back loans to residential property investors.

Such measures may reduce the requirement for a hike in interest rates and investors punctually responded by kicking the kiwi to a 1-1/2-week low of $0.7486, well to do this week's peak of $0.7611.

Traders aforesaid profit taking was conjointly doubtless at play, significantly against the monetary unit and therefore the dollar, that hit record lows on the kiwi earlier within the week. (Editing by Leslie Adler)