Dollar Pares Losses, Gains Against Some Major Rivals

(RTTNews) - The U.S. dollar turned weak against its major counterparts in the New York session on Wednesday after data showing a smaller than expected increase in private sector employment added to optimism the Federal Reserve is down raising interest rates.

However, the currency recovered and scored decent gains against some of its rivals as the session progressed, with traders awaiting the crucial non-farm payroll data on Friday for more clarity about the outlook for rates.

According to the report released by payroll processor ADP, private sector employment rose by 103,000 jobs in November after climbing by a downwardly revised 106,000 jobs in October.

Economists had expected private sector employment to advance by 130,000 jobs compared to the addition of 113,000 jobs originally reported for the previous month.

"Restaurants and hotels were the biggest job creators during the post-pandemic recovery," said ADP chief economist Nela Richardson. "But that boost is behind us."

She added, "The return to trend in leisure and hospitality suggests the economy as a whole will see more moderate hiring and wage growth in 2024."

Traders awaited the release of the Labor Department's closely watched monthly jobs report on Friday. Economists currently expect employment to increase by 185,000 jobs in November after rising by 150,000 jobs in October, while the unemployment rate is expected to hold at 3.9%.

The dollar index, which dropped to 103.87, recovered past noon and was last seen at 104.18, up 0.12% from the previous close.

Against the Euro, the dollar firmed to 1.0765, and against Pound Sterling, strengthened to 1.2558.

The dollar was up against the Japanese currency, fetching 147.35 yen. Against the Aussie, the dollar was little changed at 0.6550. The Swiss franc was up slightly at 0.8749 a dollar, while the Loonie was marginally down at 1.3596 a dollar.