- The dollar gave up gains against the yen on Wednesday, pulling back from ten-week highs, after a report showed that the U.S. private sector added fewer jobs than expected in March.

USD/JPY was last down 0.05% to 103.61, after rising as high as 103.94 earlier in the session.

The dollar edged lower against the yen after payroll processing firm ADP reported that the U.S. private sector added 191,000 jobs last month, slightly below expectations for jobs growth of 195,000.

February’s figure was revised up to a gain of 178,000 from a previously reported increase of 139,000.

While the report is not viewed as a reliable guide for the government jobs report due on Friday, it does give guidance on private-sector hiring.

The yen remained weaker as risk appetite continued to be underpinned by expectations that China will soon take steps to shore up flagging growth, after recent economic reports pointed to a slowdown the world’s second-largest economy.

The yen also came under pressure after Japan’s sales tax increase to 8% from 5% came into effect on Tuesday. The increase is expected to present a challenge to the Bank of Japan’s attempts to bolster economic growth and stave off deflation.

The euro dipped lower against the dollar, as traders looked ahead to Thursday’s European Central Bank meeting, amid growing concerns over the threat of deflation in the euro zone.

EUR/USD dipped 0.05% to 1.3785, after rising as high as 1.3820 earlier.

Data released on Wednesday showing that euro zone producer prices fell in February added to pressure on the ECB to implement fresh policy measures to stave off the risk of deflation.

The pound was fractionally higher against the dollar, with GBP/USD edging up 0.07% to 1.6638, while USD/CHF edged up 0.10% to 0.8343.

Sterling remained supported after data showed that the U.K. construction sector continued to expand at a rapid pace in March, while confidence about the 12-month outlook rose to the highest in more than seven years.

The Australian dollar was steady, with AUD/USD inching up 0.02% to 0.9249. The pair briefly dipped earlier Wednesday after data showed that Australian building approvals fell 5% in February, ahead of expectations for a 2.5% drop.

NZD/USD tumbled 0.85% to 0.8564, extending its pullback from the two-and-a-half year peaks of 0.8696 struck on Tuesday amid profit taking following the recent strong gains.

Meanwhile, USD/CAD edged down 0.08% to 1.1017.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was unchanged at 80.25.

Please LIKE our Facebook page - it makes us stronger