Dollar advances after robust US private sector jobs report

NEW YORK: The US dollar gained against the yen on Wednesday for the first time in four days after a report showed US private sector employers created more jobs than expected in March, suggesting a stable labor market and supporting forecasts for at least two more interest-rate hikes this year

The greenback also rose against the euro and Swiss franc while trimming losses against the pound after the employment data.

US private employers added 263,000 jobs in March, more than their hirings in February and well above economists' expectations, a report by a payroll processor showed on Wednesday.

Economists surveyed by Reuters had forecast the ADP National Employment Report would show a gain of 187,000 jobs, with estimates ranging from 110,000 to 225,000.

"The ADP survey is clearly another indication that, despite the apparent slowdown in GDP growth in the first quarter, labor market conditions have remained unusually strong," said Capital Economics economist Andrew Hunter.

Before the data's release, the market has been rattled by political tension arising from an upcoming meeting between US President Donald Trump and Chinese counterpart Xi Jinping.

Trump's consistently harsh rhetoric on China has raised concerns about Thursday's summit, as has speculation that the US president will face challenges implementing his promised growth-boosting policies after his administration failed to pass a healthcare overhaul.

The market was also tested after North Korea test-fired a ballistic missile.

In midmorning trading, the dollar rose 0.6 percent to 111.39 yen.

The dollar index, which tracks the US currency against a trade-weighted basket of six peers, was up slightly at 100.63 , but anxiety about the US-China meeting and a risk-averse mood this week kept it from further gains.

The euro, meanwhile, slipped 0.1 percent to $1.0659