The ADP Research Institute said U.S. companies added 176,000 jobs last month, following a revised 198,000 increase in July. The median forecast of 43 economists surveyed by Bloomberg called for an August advance of 184,000.
A separate report showed fewer Americans than forecast filed applications for unemployment benefits last week. Jobless claims declined by 9,000 to 323,000 in the week ended Aug. 31, less than the lowest estimate of economists surveyed by Bloomberg, from a revised 332,000, according to Labor Department data issued today in Washington.
U.S. nonfarm payrolls rose by 180,000 in August while the jobless rate held at 7.4%, the lowest since December 2008, Labor Department data will show tomorrow, according to a separate Bloomberg survey.
Fed policy makers are debating whether the economy is strong enough to allow them to pare monthly purchases of $85 billion in Treasuries and mortgage debt, which tend to debase the dollar. A Bloomberg News survey of economists taken Aug. 9-13 showed that 65% of them expected a reduction at the Fed’s meeting on Sept. 17-18.
The dollar has strengthened 5.8% this year, according to Bloomberg Correlation-Weighted Indexes. The yen has fallen 9.7% and the euro has risen 5.3%.
“The outlook for the U.S. economy and monetary policy will have a big impact over the dollar in the medium to long term,” said Yuki Sakasai, a foreign-exchange strategist in New York at Barclays Plc. “Our view remains that the Fed will decide to taper easing in two weeks.”
The Bank of Japan, which buys more than 7 trillion yen of Japanese government bonds every month in its bid to stoke inflation to 2%, kept its policy on hold today. The BOJ said a moderate recovery is under way. BOJ Governor Haruhiko Kuroda said economic growth will exceed potential even with a planned increase in sales tax.
The pound reached a four-month high versus the euro as the Bank of England held its bond-purchase target at 375 billion pounds ($584 billion). The decision was predicted by all 38 analysts in a Bloomberg survey. Policy makers also kept the key interest rate at a record-low 0.5%.
The pound appreciated 0.3% to 84.24 pence per euro after reaching 84.08, the strongest level since May 6.
India’s rupee advanced for a second day versus the dollar. In his first briefing after taking office, Reserve Bank of India Governor Raghuram Rajan announced a plan yesterday to provide concessional swaps for banks’ foreign-currency deposits, a move that will boost the authority’s reserves by $10 billion, according to Bank of America Merrill Lynch.
The rupee traded 1.5% stronger at 66.115 per dollar after climbing as much as 2.3% to 65.53, prices from local banks compiled by Bloomberg show.
Sweden’s krona declined versus all of its 16 major peers as the nation’s central bank stuck to a plan to raise borrowing costs late next year. The krona dropped 1.3% to 6.6723 per dollar after reaching 6.6779, the weakest level since July 16. The Turkish lira weakened to a record-low 2.0841 per dollar.