Investing.com - The dollar remained close to more than four year highs against a basket of other major currencies on Wednesday, after data showing the U.S. private sector added fewer than expected jobs last month.
Payroll processor ADP reported that the U.S. private sector created 208,000 jobs in November, falling short of expectations for jobs growth of 223,000 and down from 233,000 in October.
The U.S. dollar index, which measures the greenback against a basket of six major currencies, was up 0.18% to almost four year highs of 88.86.
The yen fell to fresh seven year lows against the yen on Wednesday, as the diverging policy outlook between the Federal Reserve and the Bank of Japan continued to weigh.
USD/JPY touched highs of 119.48, the most since August 2007 and was last at 119.31.
The yen has weakened broadly since the Bank of Japan unexpectedly expanded its stimulus program in late October. In contrast, the Fed wound up its asset purchase program in October and is weighing whether or not the economy is strong enough to start raising interest rates next year.
EUR/USD touched two year lows of 1.2321 and was last down 0.36% to 1.2338 after surveys of business activity across the euro zone indicated that the region would post only marginal economic growth in the fourth quarter.
The euro zone composite purchasing managers’ index, which covers the manufacturing and service sectors across the currency bloc, fell to 51.1 last month from 52.1 in October.
The weak data added to pressure on the European Central Bank to step up measures to spur growth and combat persistently low levels of inflation in the region ahead of its monetary policy meeting on Thursday.
The pound pushed higher, with GBP/USD up 0.31% to 1.5683.
Sterling was boosted after data showing that U.K. service sector output rose at a faster than expected pace in November, easing concerns that the economic recovery is moderating.
The U.K. services PMI rose to 58.6 last month from 56.2 in October. Economists had expected the index to tick up to 56.6.
The dollar gained ground against the Swiss franc, with USD/CHF up 0.32% to 0.9752.
The Australian dollar was near four year lows, with AUD/USD down 0.27% to 0.8425 after data overnight showed that the country’s economy grew 0.3% in the third quarter, less than the expected 0.7% increase, and expanded by a smaller than expected 2.7% from a year earlier.
Elsewhere, NZD/USD was down 0.23% to 0.7787 and USD/CAD was down 0.24% to 1.1378 ahead of the Bank of Canada’s monetary policy announcement later in the day.