The
greenback has lost ground against major rivals after the U.S.
Federal Reserve in a policy statement at the end of July said
the job market had "some ground to cover" before it eases
stimulus.
But it is still up around 2% overall since a Fed meeting in
June, when the central bank flagged it was gearing up for
sooner-than-expected rate hikes.
On Wednesday the dollar index edged up 0.1%, last at 92.109.
Investors will get a clue on the jobs situation later on
Wednesday with the publication of the ADP employment survey,
ahead of Friday's labor market report.
"The U.S. labor market report on Friday is likely to be the
highlight of this week for the markets," currency analysts at
Commerzbank said in a note, adding ADP data would provide a
foretaste, but was unlikely to significantly move the dollar.
The U.S. dollar was last broadly flat against the euro, after
gains on data showing euro zone business activity surged in
July, expanding at its fastest pace for 15 years.
The euro was last trading at $1.18560.
The New Zealand dollar made strong gains for the second
consecutive day, after a drop in unemployment in the country
raised expectations rate hikes could begin within weeks.
The kiwi was last up 0.9% against the U.S. dollar, at $0.70740.
The country's central bank had said on Tuesday it would soon
begin consulting on ways to tighten mortgage lending standards,
as it tries to control an inflated housing market.
"The heat we've been hearing and warning about regarding New
Zealand's labour market has been borne out," said analysts at
Bank of New Zealand.
"This surely removes any doubt about the (central bank) soon
removing its foot from the accelerator."
Against the yen, the dollar traded near recent lows, last at
109.140.
Sterling edged up 0.1% ahead of a Thursday Bank of England
meeting, at $1.39250.
(Reporting by Iain Withers; Editing by Kim Coghill and Barbara
Lewis)
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