Dollar edges higher as reports show private employers add jobs, service sector grows

Dollar edges higher on upbeat economic reports

NEW YORK — The dollar climbed off of monthly lows against major currencies Wednesday as upbeat reports on jobs and the service industry reassured investors that the economy is continuing to grow.

The euro dropped to $1.3172 in late New York trading from $1.3231 late Tuesday, while the British pound fell to $1.5898 from $1.5946 and the dollar edged up to 86.24 Japanese yen from 85.85 yen.

The dollar slid Tuesday to its lowest level in months against the euro, pound, yen and Swiss franc on worsening figures for U.S. consumer spending, factory orders and pending home sales.

The market’s focus has switched recently from Europe’s debt troubles to the prospect of slowing growth in the United States, reducing the chances of American interest rates rising any time soon and dulling the dollar’s allure as a safe-haven asset.

Traders have grappled with earnings and economic reports in recent weeks that provide a mixed picture about the recovery. Key reports Wednesday show that while growth might be sluggish, there are no indications the economy is headed back into recession.

Payroll company ADP said that private employers modestly increased hiring last month, while the Institute for Supply Management’s service sector index rose unexpectedly in July. The latest batch of earnings were also largely better than expected.

Markets are now awaiting the Labor Department’s monthly jobs report due out Friday. That data is expected to show private employers added 90,000 jobs last month and the unemployment rate rose to 9.6 percent from 9.5 percent in June.

In other late trading Wednesday, the dollar jumped to 1.0523 Swiss francs from 1.0391 francs, but slid to 1.0168 Canadian dollars from 1.0232 Canadian dollars.