* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E (New throughout, updates prices, changes byline, dateline; previous LONDON)
By Karen Brettell
NEW YORK, March 3 (Reuters) - The dollar gained on Wednesday as investors priced for strong U.S. growth relative to other regions, while the safe haven Japanese yen continued to weaken to a seven-month low.
Investors have boosted bets on U.S. growth and inflation as the government prepares new fiscal stimulus, and speculation is rising that the Federal Reserve could also be closer to normalizing monetary policy than previously expected.
"What the market is looking at today are growth differentials between a recovering U.S. and more of a sputtering Europe," said Joe Manimbo, senior market analyst at Western Union Business Solutions, in Washington.
Data on Wednesday showed that the euro zone economy is almost certainly in a double-dip recession as COVID-19 lockdowns continue to hammer the services industry. data also showed that private payrolls rose by 117,000 jobs last month, according to the ADP (NASDAQ:ADP) National Employment Report, missing expectations.
However, "expectations are for stronger hiring" when the U.S. releases jobs data for February on Friday, Manimbo said.
The dollar index =USD was last up 0.22% at 90.997.
The euro EUR=EBS dipped 0.30% to $1.2054.
The U.S. currency has also benefited from a rise in U.S. Treasury yields. Benchmark 10-year yields US10YT=RR on Wednesday rose to 1.481%, though they are below a one-year high of 1.614% reached last week.
Comments by Federal Reserve Chairman Jerome Powell on Thursday will be closely evaluated for any indications that the Fed is uncomfortable with the recent yield increases. He is speaking at an event on the U.S. economy.
Riskier currencies including the Australian dollar dipped as stocks fell, indicating worsening risk sentiment. .N
The Aussie AUD=D3 was last down 0.57% at $0.778. It has fallen from a three-year high of $0.8007 last week.
Meanwhile the safe haven Japanese yen JPY=D3 continued to weaken, falling as far as 107.08 yen, the weakest since July 23.
The British pound was last down 0.06% on the day at $1.3950 after British finance minister Rishi Sunak said that Britain's government would borrow significantly more in the coming financial year than thought just a few months ago. said the economy would regain its pre-pandemic size in the middle of 2022, six months earlier than previously forecast, helped by Europe's fastest COVID-19 vaccination program. bid prices at 9:45AM (1445 GMT) Description
RIC
Last
U.S. Close Pct Change
YTD Pct
High Bid
Low Bid
Previous
Change
Session
Dollar index
=USD
90.9970
90.8110
+0.22%
1.129%
+91.0620
+90.6260 Euro/Dollar
EUR=EBS
$1.2054
$1.2091
-0.30%
-1.33%
+$1.2114
+$1.2043 Dollar/Yen
JPY=D3
107.0750
106.7450
+0.17%
+3.52%
+107.0750 +106.7000 Euro/Yen
EURJPY=
129.07
128.99
+0.06%
+1.69%
+129.4500 +128.7500 Dollar/Swiss
0.9179
0.9145
+0.39%
+3.77%
+0.9188
+0.9140 Sterling/Dollar GBP=D3
$1.3950
$1.3963
-0.06%
+2.14%
+$1.4005
+$1.3939 Dollar/Canadian CAD=D3
1.2648
1.2636
+0.10%
-0.67%
+1.2657
+1.2594 Aussie/Dollar
AUD=D3
$0.7776
$0.7821
-0.57%
+1.09%
+$0.7838
+$0.7770 Euro/Swiss
EURCHF=
1.1063
1.1053
+0.09%
+2.37%
+1.1086
+1.1055 Euro/Sterling
EURGBP=
0.8637
0.8660
-0.27%
-3.36%
+0.8667
+0.8623 NZ
NZD=D3
$0.7248
$0.7292
-0.53%
+1.00%
+$0.7303
+$0.7246 Dollar/Dollar
Dollar/Norway
NOK=D3
8.4950
8.4735
+0.19%
-1.14%
+8.5215
+8.4420 Euro/Norway
EURNOK=
10.2360
10.2430
-0.07%
-2.18%
+10.2653
+10.2100 Dollar/Sweden
8.4051
8.3780
+0.03%
+2.55%
+8.4196
+8.3570 Euro/Sweden
EURSEK=
10.1275
10.1247
+0.03%
+0.51%
+10.1420
+10.1090
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https://tmsnrt.rs/2RBWI5E
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