NEW YORK: The dollar slipped on Wednesday in choppy trading, with the market having a modest appetite for risk-taking amid generally upbeat US data and improving European economic numbers.
The greenback fell against currencies that perform well in times of risk appetite such as the Australian, New Zealand, and Canadian dollars, as well as sterling.
However, moves in the currency market have little conviction, as doubts mounted about a much-anticipated global economic recovery given the resurgence of US cases of Covid-19, the illness caused by the novel coronavirus, and the threat of renewed lockdowns in US states deemed hot spots.
The dollar reacted little to the ADP National Employment Report, which showed private payrolls increased by 2.369 million jobs last month.
The dollar did lose ground as a safe haven, after US manufacturing data showed a reading that suggested an expansion for the month of June.
In midmorning trading, the dollar was down 0.3% against a basket of currencies at 97.145.
Against the yen, the dollar fell 0.5% to 107.42 yen. Analysts said the yen's rise was safe haven-related given the declining stock markets, especially in Asia.
The euro, meanwhile, rose 0.3% to $1.1258, after a rally in which the euro gained 6% against the dollar in May and early June.
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