Dollar Rises Against Major Counterparts On Strong ADP Data, Geopolitical Tensions

(RTTNews) - The U.S. dollar climbed higher on Wednesday, lifted by strong U.S. private sector employment data, and on safe-haven buying amid persisting worries about geopolitical tensions.

Data from payroll processor ADP said private sector employment climbed by 143,000 jobs in September after rising by an upwardly revised 103,000 jobs in August. Economists had expected private sector employment to advance by 120,000 jobs compared to the addition of 99,000 jobs originally reported for the previous month.

Optimism about aggressive interest rate cuts by the Federal Reserve has faded following the stronger than expected data on private sector job growth in September.

On Friday, the Labor Department is due to release its more closely watched report on employment in the month of September.

Economists currently expect the report to show employment rose by 140,000 jobs in September after climbing by 142,000 jobs in August, while the unemployment rate is expected to hold at 4.2 percent.

On the geopolitical front, tensions in the Middle East escalated on Tuesday following Iran's ballistic missile attack against Israel.

The attacks raised concerns about oil supply and pushed up the prices of the commodity, thus leading to fears of a resurgence in inflation.

The dollar index surged to 101.69, gaining more than 0.5%.

Against the Euro, the dollar strengthened to 1.1049 from 1.1068, and firmed to 1.3269 against Pound Sterling from 1.3285.

The dollar climbed sharply against the Japanese currency, fetching 146.49 yen a unit, rising from 143.56 yen. Against the Aussie, the dollar was down slightly at 0.6885 a little while ago.

The Swiss franc weakened to 0.8498 against the greenback from 0.8465, while the Loonie was down marginally at 1.3505 a unit of the U.S. currency.