Investing.com - The dollar continued to trade close to six-week lows against the other major currencies on Wednesday following a report showing that U.S. private sector hiring rose unexpectedly last month.
Payroll processor ADP said the U.S. private sector added 179,000 jobs last month, surpassing expectations for an increase of 170,000.
The economy created 176,000 jobs in June, whose figure was revised from a previously reported increase of 172,000, the report said.
While not viewed as a reliable guide for the government jobs report due on Friday, August 5, it does give guidance on private-sector hiring.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.18% at 95.19, not far from the six-week trough of 94.94 set on Tuesday.
The dollar has come under pressure amid diminished expectations for another rate hike by the Federal Reserve this year after last week’s surprisingly weak data on U.S. second quarter growth.
Earlier in the week Dallas Fed head Robert Kaplan urged caution on raising U.S. interest rates again amid a raft of risks facing the global economy.
The U.S. central bank hiked rates for the first time in almost a decade in December.
The euro eased back from five-week highs, with EUR/USD slipping 0.24% to 1.1196.
Earlier Wednesday, data showed that business activity in the single currency bloc picked up slightly in July, but remained subdued.
The yen was close to five-week highs, with USD/JPY at 101.02.
Japan’s government on Monday approved a package of stimulus measures to spur economic growth, but investors fear the measures are not strong enough to stave off deflation.
The Bank of Japan held off implementing fresh stimulus measures last week, saying it would review monetary policy again in September.
The dollar was higher against the Swiss franc, with USD/CHF up 0.44% at 0.9685, while sterling eased, with GBP/USD sliding 0.17% to 1.3332.