Dollar Extends Losses Against Major Counterparts

(RTTNews) - The U.S. dollar lost ground against its major rivals on Wednesday, after data showing a slowdown in private sector job growth and a less than expected growth of the U.S. GDP in the second quarter raised expectations of a pause in interest rate hike by the Federal Reserve.

A report from payroll processor ADP showed private sector employment in the U.S. climbed by 177,000 jobs in August after surging by an upwardly revised 371,000 jobs in July.

Economists had expected private sector employment to advance by 195,000 jobs compared to the jump of 324,000 jobs originally reported for the previous month.

The slightly smaller than expected increase in private sector employment added to recent optimism about the outlook for interest rates.

Separately, revised data released by the Commerce Department showed the U.S. economy grew by less than previously estimated in the second quarter.

The report said the increase in gross domestic product in the second quarter was downwardly revised to 2.1% from the previously reported 2.4%. Economists had expected the pace of GDP growth to be unrevised.

The dollar index dropped to 102.94 after the release of the GDP and ADP data, and despite recovering to 103.17, remains in negative territory with a loss of about 0.35%.

Against the Euro, the dollar has weakened to 1.0924 from 1.0882. The dollar is trading at 1.2720 against Pound Sterling, easing from 1.2643.

Against the Japanese currency, the dollar is up, fetching 146.22 yen a unit, after closing at 145.87 yen on Tuesday.

The dollar is little changed against the Aussie at 0.6476. The dollar had dropped to 0.6523 a unit of Aussie earlier in the day.

The dollar is little changed against Swiss franc at CHF 0.8784. Against the Loonie, the dollar is down at C$1.3534.