The greenback pared an advance against the yen as U.S. companies added fewer jobs than forecast, encouraging the Federal Reserve to keep borrowing costs low. The euro rose versus most of its major counterparts as European services and manufacturing growth accelerated. New Zealand’s dollar dropped to a two-week low on the biggest net outflow of residents in more than 10 years.
“The ECB has nailed its anti-inflation colors firmly to the mast, and the Fed hasn’t even got around to starting yet,” said Steven Barrow, a currency strategist at Standard Bank Plc in London. “This euro rally won’t extend too far if the ECB isn’t as hawkish as the market expects.”
The euro rose 0.5 percent to $1.4901 at 8:37 a.m. in New York, from $1.4825 yesterday. It touched $1.4915, the highest level since December 2009. The shared currency gained 0.6 percent to 120.69 versus the yen, from 119.99. The dollar advanced less than 0.1 percent to 81 yen, from 80.94.
The Swiss franc strengthened to a record 85.94 centimes per dollar before trading at 86.02 centimes.
The greenback fell against most of its major peers as ADP Employer Services data showed employment at U.S. companied increased by 179,000 jobs in April, from a revised 207,000 in March. The median estimated in a Bloomberg News survey called for a 198,000 advance this month.
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