Dollar Turns Weak Against Most Of Its Major Counterparts

(RTTNews) - The U.S. dollar turned weak on Wednesday after data from payroll processor ADP showed a smaller than expected increase in private sector employment in the month of September.

Meanwhile, the yield on U.S. 10-year Treasury Note dropped to 4.77% today.

The ADP data showed private sector employment rose by 89,000 jobs in September after climbing by an upwardly revised 180,000 jobs in August. Economists had expected private sector payroll to increase by 153,000 jobs, compared to the addition of 177,000 jobs originally reported for the previous month.

The data raised expectations that the Federal Reserve may stop raising interest rates soon.

The Institute for Supply Management released a separate report this morning showing a modest slowdown in the pace of growth in U.S. service sector activity in the month of September.

The ISM said its services PMI edged down to 53.6 in September from 54.5 in August, although a reading above 50 still indicates growth. The modest decrease matched economist estimates.

Markets now await the Labor Department's more closely watched report on Friday. Economists expect employment to increase by 170,000 jobs in September after climbing by 187,000 jobs in August, while the unemployment rate is expected to edge down to 3.7% from 3.8%.

The dollar index, which dropped to 106.51 after the ADP data, recovered to 106.75, but still remains well below the flat line, losing nearly 0.25%.

Against the Euro, the dollar has weakened to 1.0505 from 1.0466, and against Pound Sterling, it is down at 1.2140.

The dollar is up slightly at 149.10 yen. Against the Aussie, the dollar has eased to 0.6324 from 0.6302. The Swiss franc has strengthened to 0.9169 a dollar, firming from 0.9212.

The Loonie is weak, weighed down by falling oil prices. The Canadian currency is trading at C$1.3744 a dollar, easing from C$1.3710.