Dollar Remains Lower Versus Majors Before U.S. Jobs Data

The dollar remained lower after declining yesterday against most of its 16 major counterparts before a private jobs report in the U.S. forecast to show companies added positions in February.

Demand for the U.S. currency was limited before the Federal Reserve releases its Beige Book report. The euro was little changed against the yen for a third day before European Central Bank President Mario Draghi and his board meet tomorrow. Speculation that central banks will continue stimulus helped spur the Dow Jones Industrial Average to a record in New York. Australia’s dollar rose for a second day versus major peers as data showed economic growth accelerated last quarter.

“The dollar is being sold in a risk-on trade,” said Kazuo Shirai, a trader at Union Bank NA in Los Angeles. “The Dow Average climbed to a record and Treasuries were sold. The market is waiting for the jobs report.”

The dollar traded at $1.3060 per euro as of 9:56 a.m. in Tokyo after falling 0.2 percent to $1.3052 in New York. It fetched 93.16 yen from 93.29 yesterday, when it weakened 0.2 percent. The euro was little changed at 121.66 yen.

U.S. companies took on more workers last month after adding the most jobs in almost a year in January, figures from the Roseland, New Jersey-based ADP Research Institute will probably show today.

(Source: Bloomberg)