Dollar Rises as Traders Look Past Jobs Report for Rate Guidanceby and
ADP report shows smallest payrolls addition since April 2013
Greenback climbs against euro and yen, erasing earlier losses
The dollar rose versus the yen and the euro even as a private jobs report showed U.S. employers added fewer workers last month than forecast, muddying the outlook for higher interest rates.
The currency gained against most major peers after the release from the ADP Research Institute showed 156,000 workers were added in April, the least in three years and below the 195,000 addition forecast. A government report on May 6 is projected to show 200,000 extra employees joined the labor force last month.
The Federal Reserve is scrutinizing data for signs the U.S. economy is able to withstand higher borrowing costs, after policy makers lifted rates from near zero in December. Atlanta Fed President Dennis Lockhart on Tuesday said a June rate increase was “a real option,” while San Francisco’s John Williams said he would support such a move provided the economy stayed on track.
The dollar rose 0.5 percent to 107.16 yen as of 10:16 a.m. in New York, and traded up 0.2 percent at $1.1471 per euro.