Stronger demand for goods and services is prompting companies to hold the line on firings and expand headcount. Continued progress in the labor market will be needed to boost aggregate income and drive consumer spending, which accounts for almost 70 percent of the economy.
The greenback pared gains amid speculation it gained too much, too fast, and as U.S. Treasury yields fell. The currency jumped earlier as a private report showed U.S. companies added more than 200,000 workers for a sixth month.
Treasuries fell, pushing 10-year note yields up from the lowest level in three weeks, amid speculation a strengthening employment market will keep the Federal Reserve on track to raise rates next year.