The market reaction to the mildly disappointing September US jobs report was fairly uninspiring … unless you look at the greenback’s performance against the Japanese yen.

The dollar was off by 1 per cent against the yen in morning action in New York, after trading just slightly lower leading up to the data that showed the American economy added fewer jobs than expected last month.

The dollar-yen pair has garnered attention in the currency market as investors have debated about both when the Federal Reserve will resume tightening policy after a December 2015 rate increase and over the Bank of Japan’s willingness to knock its benchmark rate further into negative territory in a bid to end years of on-again off-again deflation.

The greenback has tumbled by 14.4 per cent against the yen this year.

The reaction to the jobs report across other currencies was more modest, with the euro up by 0.3 per cent against the dollar, and the pound essentially holding its loss of 1.8 per cent.

Sterling collapsed by about 6 per cent in an overnight “flash crash” that was blamed on computer trading, before recovering sharply cutting its loss.

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