The U.S. dollar rose to three-week highs against a basket of currencies on Wednesday after data showed that jobs gains in August were roughly in line with expectations, before paring gains on weak manufacturing data.
Hawkish comments by Fed Chair Janet Yellen and Vice Chair Stanley Fischer last week increased expectations the U.S. central bank is moving closer to an interest rate hike.
Fischer has said that jobs data for August due on Friday will be a consideration on when the Fed raises rates. Employers are expected to have added 180,000 jobs in August, according to the median estimate of 89 economists polled by Reuters.
The greenback rose to session highs after the ADP National Employment Report on Wednesday showed U.S. private employers adding 177,000 jobs in August, slightly above the 175,000 forecast by a Reuters survey of economists.