WASHINGTON (dpa-AFX) - The U.S. dollar rebounded after falling to a multi-month low against the yen in early trades and gained in strength against most of its rivals as the session progressed on Wednesday.
The dollar edged lower against major currencies earlier in the day after data showed job growth in the U.S. slowed much more than forecasts in May, triggering fears over a possible recession and expectations of a rate cut in near future.
Data from payroll processor ADP showed that private sector employment edged up by 27,000 jobs in May after spiking by a downwardly revised 271,000 jobs in April.
However, the greenback turned positive as the day progressed, aided by the Beige Book that said economic activity expanded from April through mid May.
The dollar's rise was also supported by data from the Institute for Supply Management that showed an unexpected acceleration in the pace of U.S. service sector growth in the month of May.
The ISM said its non-manufacturing index climbed to 56.9 in May after falling to 55.5 in April.
The dollar index dropped to a low of 96.75, but rallied to 97.37 later in the session, gaining about 0.3% over previous close.
Against the euro, the dollar was up 0.28% at 1.1223, recovering from a low of 1.1306.
The U.K.'s pound sterling was down 0.14% at $1.2682, falling from a high of $1.2744.
The greenback was up against the yen as well with a unit fetching 108.45 yen after having weakened to 107.81 in early trades.
The dollar gained about 0.3% against the aussie with the AUD-USD pair trading at 0.6969.
Against Swiss franc, the dollar was up 0.25% at 0.9947, and against the loonie it was up 0.2% at 1.3420.
The Beige Book said economic activity in the U.S. expanded at a modest pace overall from April through mid-May.
The Beige Book's assessment of the overall economy reflected a slight improvement over the slight-to-moderate growth indicated in the previous report.
The Fed said almost all districts reported some growth, with a few districts reporting moderate gains in economic activity.
Manufacturing reports were described as generally positive, although the Fed highlighted uncertainty about the impact of trade negotiations and tariffs.
Copyright RTT News/dpa-AFX
© 2019 AFX News
