FOREX-Dollar falls vs yen, euro, tracking U.S. stocks, yields

    * ADP private sector jobs data slightly lower than expected
    * Weak U.S. manufacturing data still haunts FX market
    * Aussie slides to decade low as investors seek safety
    * Sterling weakens as Britain readies new Brexit offer
    * Graphic: World FX rates in 2019

 (Recasts, adds new comment, U.S. data, FX table, updates prices)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Oct 2 (Reuters) - The dollar dropped against the euro and yen on Wednesday, in line with
falls in equities and Treasury yields, amid worries about global growth following data a day earlier that
showed a sharp decline in U.S. manufacturing activity.
    A U.S. payrolls report on the private sector showed a lower-than-expected figure for September, but
market participants were relieved the data was not as bad as many initially feared especially in the wake
of poor U.S. manufacturing numbers. 
    Data from the U.S. payrolls processor ADP showed that U.S. private sector jobs totaled 135,000 last
month, lower than the 140,000 consensus forecast.
    The dollar initially trimmed losses against the yen and euro after the U.S. jobs data.
    "With the ADP report, the initial reaction was mild relief that the numbers weren't worse because
yesterday the horrible ISM (manufacturing) data had a pretty weak employment component," said Erik Bregar,
director and head of FX strategy at Exchange Bank of Canada in Toronto.
    "But that initial move is fading now. Arguably, something is not right here. The U.S. ISM report
proved that and I really wonder when the Fed's going to stop pretending that everything is okay," he
    U.S. manufacturing contracted at the fastest pace in more than a decade in September, making the
United States the latest country to suffer a manufacturing downturn amid a trade war between Washington
and Beijing.
    Many analysts, however, say the dollar's higher yield and the relative strength of the U.S. economy
should make its setback temporary. Non-farm payrolls data due on Friday should give more insight into the
health of the U.S. economy.
    In morning trading, the dollar fell 0.3% against the yen to 107.39 yen, reflecting investor
demand for safer assets after the manufacturing data heightened concerns about the health of the global
    The euro rose 0.1% against the dollar to $1.0944 but was above Tuesday's two-year low of
    The dollar index, which measures the greenback's value against a basket of six major currencies, was
little changed at 99.13 after reaching 99.667 on Tuesday, a 29-month peak, before the manufacturing
data was released.
    Michael Hewson, analyst at CMC Markets in London said weakness in U.S. manufacturing would have to
spill over into services before it had much impact on monetary policy and the outlook for the dollar.
    Elsewhere, the Australian dollar fell 0.2% to US$0.6696, its weakest since early 2009, as
investors sold currencies linked to the outlook of the global economy. The Aussie fell to a fresh 10-year
trough on Wednesday after the Reserve Bank of Australia cut rates to a record low on Tuesday.
    The pound was down 0.1% at $1.2290 amid doubt over whether Prime Minister Boris Johnson's
final Brexit offer to the European Union would be well-received by Brussels. 
    Currency bid prices at 10:19AM (1419 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar      EUR=        $1.0943        $1.0930     +0.12%         -4.57%      +1.0949     +1.0905
 Dollar/Yen       JPY=        107.4500       107.7400    -0.27%         -2.56%      +107.8900   +107.3700
 Euro/Yen         EURJPY=     117.60         117.77      -0.14%         -6.83%      +118.0000   +117.3800
 Dollar/Swiss     CHF=        0.9996         0.9933      +0.63%         +1.84%      +1.0025     +0.9922
 Sterling/Dollar  GBP=        1.2280         1.2301      -0.17%         -3.74%      +1.2311     +1.2228
 Dollar/Canadian  CAD=        1.3284         1.3218      +0.50%         -2.60%      +1.3284     +1.3205
 Australian/Doll  AUD=        0.6696         0.6702      -0.09%         -5.01%      +0.6718     +0.6672
 Euro/Swiss       EURCHF=     1.0940         1.0857      +0.76%         -2.79%      +1.0953     +1.0854
 Euro/Sterling    EURGBP=     0.8910         0.8884      +0.29%         -0.83%      +0.8924     +0.8883
 NZ               NZD=        0.6254         0.6244      +0.16%         -6.89%      +0.6257     +0.6220
 Dollar/Norway    NOK=        9.1407         9.1236      +0.19%         +5.82%      +9.1610     +9.1159
 Euro/Norway      EURNOK=     10.0049        9.9752      +0.30%         +1.00%      +10.0135    +9.9684
 Dollar/Sweden    SEK=        9.8997         9.8768      +0.32%         +10.44%     +9.9205     +9.8573
 Euro/Sweden      EURSEK=     10.8354        10.8006     +0.32%         +5.57%      +10.8400    +10.7807
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Tommy Wilkes; Editing by Bernadette Baum)