Dollar gains after data boosts Fed taper hope

Foreign exchange currencies.
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The dollar rose against the euro and the yen on Wednesday after a batch of data boosted expectations the Federal Reserve may start scaling back its massive stimulus program sooner than expected.

The euro fell on concern about an uneven recovery in the currency bloc. It hit a two-month low versus the Swiss franc on hedge funds selling ahead of next week's Swiss National Bank meeting, at which it is likely to reiterate its commitment to the euro/Swiss peg of 1.20 francs.

U.S. private sector hiring rose by the most in a year in November, while economic activity in the private sector bounded back, reports showed.


The euro fell 0.4 percent to $1.3531. Service sector data showed activity in Italy and France contracting in November but expanding in Spain and Germany, highlighting the divergence in the bloc.

The dollar gained 0.1 percent to 102.60 yen, having traded as high as 102.83, according to Reuters data. The dollar index was slightly lower on the day at 80.907.