NEW YORK (AFP) - The dollar traded lower Wednesday following reports from the United States giving a mixed picture of the economic recovery.
The euro rose to 1.4627 dollars at 2100 GMT against 1.4581 late Tuesday in New York.
The dollar was meanwhile trading at 89.66 yen, down from 90.10 on Tuesday.
Market sentiment was affected by data from the United States showing the economy apparently emerging from recession along with worse-than-expected employment figures.
Revised data revealed a smaller-than-expected 0.7 percent pace of output decline.
That figure was better than last month's estimate of a 1.0 percent drop and stronger than the average estimate of private economists for a 1.2 percent annualized rate of decline.
The report appeared to confirm that the world's biggest economy was emerging from its long recession and rebounding from a hefty 6.4 percent tumble in the first quarter of 2009.
The latest report "sets the stage for an improved economic outlook for the rest of 2009 and throughout 2010," said Aaron Smith at Moody's Economy.com.
But the growth results stood in contrast to a report from payrolls firm ADP that the US private sector shed 254,000 jobs in September.
The figure was the smallest number of job losses in more than a year for nonfarm private employment but higher than the 200,000 expected by most analysts.
"Overall, the ADP report was not that large of a disappointment and US GDP was not that large of a positive surprise," said Michael Woolfolk at Bank of New York Mellon.
"Rather, the data this morning was a mixed bag that was consistent with the consensus view that the US economy is stabilizing, but is too weak to begin raising rates and removing other stimulus measures."
A better picture of economic momentum comes in Friday's report on US payrolls and unemployment. The report is expected to show another 180,000 job losses and an unemployment rate climbing from 9.7 to 9.9 percent.
"Without any outsized, upside surprise, player are happy to square up short dollar positions ahead of Friday's non-farm payrolls," Woolfolk said.
Terri Belkas at Forex Capital Management said the market will also digest Thursday's data on personal income and spending. She said an expected jump in spending is likely to be due primarily to sales of durable goods like automobiles due to the "cash for clunkers" incentives.
She said Federal Reserve chairman Ben Bernanke's comments to lawmakers will also be watched.
"If Bernanke suggest that significant risks remain throughout the markets because additional regulation has not been pushed through, his comments may override any of the sentiment reflected in the personal spending and personal income reports," she added.
In late New York trade, the dollar stood at 1.0359 Swiss francs from 1.0362 Tuesday.
The pound was at 1.5981 dollars after 1.5956.
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