Investing.com - The dollar extended gains against the other major currencies on Wednesday, as the release of strong U.S. data boosted optimism over the strength of the economy.
The dollar was higher against the yen, with USD/JPY up 0.29% at 121.41.
Payroll processing firm ADP reported on Wednesday that U.S. non-farm private employment rose by 182,000 last month, above expectations for an increase of 180,000.
The economy created 190,000 jobs in September, whose figure was downwardly revised from a previously reported increase of 200,000.
Separately, the U.S. Commerce Department said that the trade deficit declined to $40.81 billion in September from $48.02 billion in August, whose figure was revised from a previously reported deficit of $48.3 billion.
Analysts had expected the U.S. trade deficit to narrow to $41.1 billion in September.
Also Wednesday, the Institute of Supply Management said its non-manufacturing purchasing manager's index rose to 59.1 last month from 56.9 in September, well ahead of above forecasts of 56.5.
EUR/USD tumbled 0.95% to trade at three-month low of 1.086-.
The euro came under pressure after European Central Bank President Mario Draghi signaled the possibility for additional easing measures.
Draghi said policymakers would re-examine the degree of monetary stimulus already deployed at their December meeting and reiterated that they remained willing and able to act to bolster price growth in the euro area.
Elsewhere, the dollar was higher against the pound and the Swiss franc, with GBP/USD down 0.25% at 1.5383 and with USD/CHF gaining 0.25% to 0.9932.
Sterling found some support after market research group Markit its U.K. services PMI increased to 54.9 last month from a reading of 53.3 in September. Analysts had expected the index to rise to 54.5 in October.
The Australian and New Zealand dollars were weaker, with AUD/USD down 0.35% at 0.7161 and with NZD/USD tumbling 1.13% to 0.6591.
Meanwhile, USD/CAD climbed 0.59% to trade at 1.3135 after Statistics Canada said the trade deficit narrowed to C$1.73 billion in September from C$2.66 billion in August, whose figure was revised from a previously estimated deficit of C$2.53 billion.
Analysts had expected the trade deficit to narrow to C$1.90 billion in September.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.75% at 97.98, the highest level since October 29.