Dollar loses ground as ADP report disappoints

The dollar tumbled Wednesday after ADP said the U.S. private sector added only 185,000 jobs in July.

Payroll processing firm ADP said non-farm private employment rose 185,000 last month, below expectations for an increase of 215,000. The economy created 229,000 jobs in June, whose figure was downwardly revised from a previously reported increase of 237,000.

The greenback weakened to 124.22 yen after the report from 124.40 yen shortly before.

The euro strengthened to $1.0907 from $1.0850, while the pound rose to $1.5642 from $1.5630 beforehand.

The ADP number is a widely watched indicator of the Labor Department’s nonfarm payrolls number, expected Friday. But analysts noted that ADP has consistently underestimated the official number so far this year.