* Dollar falls from six-week high against major currencies
* ECB seen likely to reaffirm low rates
* U.S. jobs data on Friday crucial to Fed expectations
By Wanfeng Zhou
NEW YORK, Sept 4 The dollar fell from a six-week
high against major currencies on Wednesday as investors booked
profits on its recent gains before jobs numbers due this week.
The dollar's weakness was most pronounced against
growth-linked currencies, with the Australian and New Zealand
dollars both rallying more than 1 percent.
Investors are shifting focus to U.S. labor market data, with
the ADP private-sector jobs number due out Thursday and the
government employment report on Friday. The data will likely
help determine whether the Federal Reserve will start reducing
its stimulus at its Sept. 17-18 meeting.
"While we are still expecting the Fed to announce plans to
taper this month, there is still some uncertainty headed into
Friday's jobs data," said Charles St-Arnaud, foreign exchange
strategist at Nomura Securities in New York.
The dollar index fell 0.3 percent to 82.131,
retreating from Tuesday's peak of 82.516, its highest since July
The euro rose 0.3 percent to $1.3212, gaining for the
first time in six sessions. It hit a six-week low of $1.3137 on
Tuesday. The euro also gained 0.4 percent to 131.58 yen.
Data showed euro zone businesses had their best month in
over two years in August as orders increased for the first time
The European Central Bank on Thursday is expected to
reaffirm it will keep interest rates low to support the euro
zone's fragile recovery.
That contrasts with the Fed's plan on moving away from its
ultra-loose policy, moving interest rate differentials against
"If the ECB uses strong language to enforce forward
guidance, trying to keep interest rates low, this would be
negative for the euro," said Ulrich Leuchtmann, head of FX
research at Commerzbank in Frankfurt.
The dollar rose 0.1 percent to 99.61 yen, giving up
most gains after the U.S. Senate Foreign Relations Committee
approved a resolution authorizing the use of military force in
Syria by a 10-7 vote. The vote clears the way for a vote on the
resolution in the full Senate, likely next week.
The safe-haven yen and Swiss franc will likely benefit
should an attack against Syria come in the coming days.
The possibility of military strikes on Syria was seen moving
a step closer early on Wednesday after Russian President
Vladimir Putin signalled a readiness to drop his opposition if
Damascus were proven to have carried out a chemical weapons
But he also said the U.S. Congress had no right to approve
the use of force against Syria without a decision from the U.N.
Security Council, and that doing so would be an "act of
The Australian dollar gained 1.2 percent to $0.9171.
The New Zealand dollar rallied 1.4 percent to $0.7910.
Data showed growth in China's services sector hit a
five-month high, underpinned by new orders and business
Central banks in Japan and Britain also hold policy meetings
this week, while the Group of 20 will meet in St Petersburg,