Log In | Register
NEW YORK — The dollar slipped slightly Wednesday on reports that productivity jumped and employers are cutting fewer workers, though layoffs are likely to continue.
The 16-nation euro edged up to $1.4273 from $1.4213 it bought late Tuesday, while the British pound rose to $1.6279 from $1.6161. The dollar fell to 92.15 Japanese yen from 92.95 yen.
Productivity — the amount of output per hour of work — rose at an annual rate of 6.6 percent in the April-June quarter, the Labor Department said. That's the largest advance since the summer of 2003. And it's slightly better than the 6.4 percent productivity increase the government had estimated last month.
At the same time, labor costs fell at an annual rate of 5.9 percent — the sharpest drop since 2000 and slightly more than the 5.8 percent drop estimated a month ago.
A private sector report on unemployment gave investors new reason to fret about what is widely seen as the biggest problem facing the economy. The ADP National Employment Report found that employment fell by 298,000 in August following a revised loss of 360,000 jobs in July. It was the smallest drop since September 2008, but ADP said employment is likely to fall for at least several more months.
Markets are also waiting for the European Central Bank's next meeting on Thursday, when the Frankfurt-based bank is expected to hold its main interest rate steady at 1 percent — higher than the Bank of England's and the U.S. Federal Reserve's main rates, which are near zero.
Higher interest rates can support a currency as investors move funds to where they earn higher returns.
In other late trading, the dollar rose slightly to 1.1060 Canadian dollars from 1.1049 late Tuesday, but fell to 1.0604 Swiss francs from 1.0662 francs.
