Investing.com - The dollar fell to fresh five-week lows against the yen on Wednesday after data showed that the U.S. private sector added fewer-than-expected jobs in September, clouding the outlook for the economic recovery.
During European afternoon trade, the dollar fell to session lows against the yen, with USD/JPY down 0.71% to 97.32.
Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 166,000 in September, below expectations for an increase of 180,000.
The previous month’s figure was revised down to a gain of 159,000 from a previously reported increase of 176,000.
The dollar remained under pressure amid fears that the U.S. government shutdown would curb the economic recovery and prompt the Federal Reserve to maintain its stimulus program for longer.
Last month the U.S. central bank took markets by surprise with a decision to keep its stimulus program on track, saying it wanted to see more evidence of a sustained economic recovery before tapering.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
Elsewhere, the euro was almost unchanged against the dollar, with EUR/USD inching up 0.03% to 1.3530 after the European Central Bank left rates on hold at 0.5% in a widely expected decision.
ECB President Mario Draghi was to speak at the bank’s post-policy meeting later in the session.
Meanwhile, Italian Prime Minister Enrico Letta was set to survive a vote of confidence in parliament on Wednesday, after Silvio Berlusconi dropped his opposition to the coalition, in a surprise U-turn after announcing Saturday that he was pulling his ministers out of the government.
The dollar was trading close to nine-month lows against the pound, with GBP/USD rising 0.17% to 1.6223.
Data released on Wednesday showed that activity in the U.K. construction sector slowed slightly in September, but remained close to August’s almost six-year high.
The dollar re-approached Tuesday’s 19-month lows against the Swiss franc, with USD/CHF slipping 0.17% to 0.9040.
Elsewhere, the greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD down 0.53% to 0.9348, NZD/USD losing 0.40% to trade at 0.8242 and USD/CAD rising 0.13% to 1.0339.
The Aussie weakened after data released on Wednesday showed that the Australian trade deficit was larger than forecast in August and a separate report showed that building approvals fell more-than-expected.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged down 0.08% to 80.20.
During European afternoon trade, the dollar fell to session lows against the yen, with USD/JPY down 0.71% to 97.32.
Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 166,000 in September, below expectations for an increase of 180,000.
The previous month’s figure was revised down to a gain of 159,000 from a previously reported increase of 176,000.
The dollar remained under pressure amid fears that the U.S. government shutdown would curb the economic recovery and prompt the Federal Reserve to maintain its stimulus program for longer.
Last month the U.S. central bank took markets by surprise with a decision to keep its stimulus program on track, saying it wanted to see more evidence of a sustained economic recovery before tapering.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
Elsewhere, the euro was almost unchanged against the dollar, with EUR/USD inching up 0.03% to 1.3530 after the European Central Bank left rates on hold at 0.5% in a widely expected decision.
ECB President Mario Draghi was to speak at the bank’s post-policy meeting later in the session.
Meanwhile, Italian Prime Minister Enrico Letta was set to survive a vote of confidence in parliament on Wednesday, after Silvio Berlusconi dropped his opposition to the coalition, in a surprise U-turn after announcing Saturday that he was pulling his ministers out of the government.
The dollar was trading close to nine-month lows against the pound, with GBP/USD rising 0.17% to 1.6223.
Data released on Wednesday showed that activity in the U.K. construction sector slowed slightly in September, but remained close to August’s almost six-year high.
The dollar re-approached Tuesday’s 19-month lows against the Swiss franc, with USD/CHF slipping 0.17% to 0.9040.
Elsewhere, the greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD down 0.53% to 0.9348, NZD/USD losing 0.40% to trade at 0.8242 and USD/CAD rising 0.13% to 1.0339.
The Aussie weakened after data released on Wednesday showed that the Australian trade deficit was larger than forecast in August and a separate report showed that building approvals fell more-than-expected.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged down 0.08% to 80.20.