The value of the U.S. dollar rebounded from early weakness in morning trading on Wednesday and has remained modestly higher.
Currently, the U.S. dollar index is trading at 92.28, up by 0.2 percent, after falling as low as 91.82 earlier in the day.
The greenback is trading at 109.46 yen compared to the 109.04 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.1837 compared to yesterday’s $1.1864.
The dollar saw some early weakness after payroll processor ADP released a report showing private sector employment increased by much less than expected in the month of July.
ADP said private sector employment rose by 330,000 jobs in July after surging by a downwardly revised 680,000 jobs in June.
Economists had expected private sector employment to spike by 695,000 jobs compared to the jump of 692,000 jobs originally reported for the previous month.
However, the buck rebounded after a separate report from the Institute for Supply management showed growth in U.S. service sector activity accelerated much more than expected in July.
The ISM said its services PMI jumped to an all-time high of 64.1 in July after pulling back to 60.1 in June, with a reading above 50 indicating growth in the sector. Economists had expected the index to inch up to 60.4.
The volatility waned in afternoon trading, as traders looked ahead to the release of the Labor Department’s closely watched monthly jobs report on Friday.