The dollar fell across the board on Wednesday after a report showed the U.S. private sector created fewer jobs than expected last month, raising concerns that recovery in the world's largest economy has stalled.
The weaker-than-expected ADP national employment report followed soft U.S. manufacturing data on Monday which suggested that the economy, on fire the last few weeks due to a run of strong data, has lost some momentum. Still, analysts were willing to suspend judgment until Friday's U.S. non-farm payrolls report.
The ADP on Wednesday reported an increase of 158,000 in private employment, much lower than the consensus forecast of 200,000. It did revise February's number to 237,000 from its initial reading of 198,000, but that did little to lift sentiment.
(Read More: Work Slowdown? ADP Says Job Creation Slowing)
"The disappointing headline did dent some of the recent optimism surrounding the U.S. recovery and the overall improvement in labor markets," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington. "While the ADP and broader non-farm payroll numbers have not had the closest correlation over recent months, investors are likely to go into Friday's jobs report a bit more cautious."