FOREX-Dollar gains vs euro, pares losses vs yen after US payrolls data

By Laura Matthews

NEW YORK, April 4 (Reuters) - The U.S. dollar rose against the euro and trimmed losses versus the yen on Friday, after non-farm payrolls data showed the U.S. economy added more jobs than expected in March.

Non-farm payrolls rose by 228,000 jobs last month after a downwardly revised 117,000 rise in February, the Labor Department said.

The euro is 0.21% weaker versus the dollar at $1.103, while the greenback pared losses against the yen to trade 0.29% lower at 145.67 yen JPY=EBS.

Uto Shinohara, senior investment strategist at Mesirow Currency Management, said that although non-farm payrolls significantly exceeded expectations, dollar moves were relatively subdued because markets remain focused on potential tariff-related repercussions.

China announced additional tariffs of 34% on U.S. goods on Friday, the most serious response in a trade war with President Donald Trump, fuelling recession concerns and triggering a global stock market rout.

"Heightened global awareness of trade tensions has increased FX volatility in response to tariff-related factors, evident in China's retaliatory measures pressuring the Australian dollar – risk currency – while supporting the Swiss franc – safe-haven currency," said Shinohara. "However, the employment report had a more limited impact on FX markets, as uncertainty surrounding tariff outcomes remains a dominant market driver."