* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
(Adds Fed data, comments, technical projections for yen, updates prices)
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 weakened 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. U.S. data also showed that private payrolls rose by 117,000 jobs last month, according to the 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 0.14% at 90.924.
The euro EUR=EBS dipped 0.19% to $1.2068.
The U.S. economic recovery continued at a modest pace over the first weeks of this year, with businesses
optimistic about the months to come and demand for housing "robust," but the job market only showing slow
improvement, the Federal Reserve reported on Wednesday. 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 1.469%, 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.
Chicago Federal Reserve Bank President Charles Evans on Wednesday said he sees the recent rapid rise in
bond yields as mostly reflecting improvements in the economy. Riskier currencies including the Australian dollar dipped as stocks fell, indicating worsening risk
sentiment. .N
The Aussie AUD=D3 was last down 0.40% at $0.7788. It has fallen from a three-year high of $0.8007 last
week.
Meanwhile the safe haven Japanese yen JPY=D3 continued to fall, reaching 107.15 yen, the weakest since
July 23.
Technical analysts at Citi said that the yen could strengthen if Treasury yields stabilize at lower
levels following Powell's appearance, and ahead of the blackout period for Fed speakers before the Fed's
March 16-17 meeting.
The yen could reach support at 106.11 to 106.22, or even continue further to the 105.33-105.44 area,
Citi said.
Sterling steadied against the dollar on Wednesday and gained against the euro after the announcement of
an expansive budget designed to prop up the British economy as it prepares for a re-opening from lockdown.
It GBP=D3 was last up 0.03% on the day at $1.3955.
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Currency bid prices at 3:27PM (2027 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 90.9240 90.8110 +0.14% 1.048% +91.0650 +90.6260
Euro/Dollar EUR=EBS $1.2068 $1.2091 -0.19% -1.22% +$1.2114 +$1.2043
Dollar/Yen JPY=D3 106.9550 106.7450 +0.20% +3.55% +107.1500 +106.7000
Euro/Yen EURJPY= 129.07 128.99 +0.06% +1.69% +129.4500 +128.7500
Dollar/Swiss CHF=EBS 0.9191 0.9145 +0.50% +3.88% +0.9197 +0.9140
Sterling/Dollar GBP=D3 $1.3955 $1.3963 -0.02% +2.18% +$1.4005 +$1.3921
Dollar/Canadian CAD=D3 1.2640 1.2636 +0.03% -0.74% +1.2657 +1.2594
Aussie/Dollar AUD=D3 $0.7788 $0.7821 -0.40% +1.26% +$0.7838 +$0.7770
Euro/Swiss EURCHF= 1.1090 1.1053 +0.33% +2.62% +1.1099 +1.1055
Euro/Sterling EURGBP= 0.8645 0.8660 -0.17% -3.27% +0.8667 +0.8623
NZ NZD=D3 $0.7261 $0.7292 -0.43% +1.11% +$0.7303 +$0.7238
Dollar/Dollar
Dollar/Norway NOK=D3 8.4875 8.4735 +0.21% -1.11% +8.5215 +8.4420
Euro/Norway EURNOK= 10.2454 10.2430 +0.02% -2.12% +10.2653 +10.2100
Dollar/Sweden SEK= 8.4177 8.3780 +0.34% +2.70% +8.4234 +8.3570
Euro/Sweden EURSEK= 10.1587 10.1247 +0.34% +0.82% +10.1645 +10.1090
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