* Dollar rises on strong U.S. private-sector jobs data
* Benchmark U.S. Treasury yields jump on ADP jobs report
* ECB policy announcement due later in the day
* Investors await for Friday's non-farm payrolls
By Yuzuha Oka
TOKYO, March 9 The dollar held gains on Thursday
as a stronger-than-expected U.S. private-sector jobs figures in
February sealed expectations that the Federal Reserve will raise
interest rates next week.
The dollar index, which measures the greenback against six
major peers, was last up 0.1 percent at 102.12, not far
from a March 2 peak of 102.26, which was a level unseen since
The ADP National Employment Report showed on Wednesday that
private payrolls grew by 298,000 jobs last month, the largest
increase since December 2015. The gain was well above
economists' expectations for a 190,000 increase.
The ADP figures come ahead of the U.S. Labor Department's
more comprehensive non-farm payrolls report on Friday, which
includes both public and private-sector employment.
Traders now price in an 85.2-percent chance of a rate
increase, according to Thomson Reuters data, up from 30 percent
at the start of last week following hawkish comments from a
string of Federal Reserve officials, including Chair Janet
The strong gain in private-sector jobs pushed benchmark U.S.
Treasury yields to their highest since December.
The 10-year U.S. Treasury note yield hit 2.583 percent
, a level last seen on Dec. 20. It last stood at
The dollar was last up 0.1 percent at 114.47 yen. The
greenback was helped by the widening U.S.-Japan interest rate
differentials. It had risen as high as 114.75 yen on Wednesday,
not far from a two-week high of 114.955 touched on Feb. 15.
However, investors were cautious ahead of Friday's non-farm
payrolls as the ADP figures have proven a poor indicator for the
awaited jobs report by the government, which is favoured by the
"After a change in ADP's methodology in October, its figures
have become closer to the government's data. So we could expect
an upbeat figure on Friday," said Junya Tanase, chief currency
strategist at JP Morgan Chase Bank.
"However, investors have already priced in February's strong
job growth, so it is less likely that the U.S. Treasury yields
jump once more and the dollar rallies unless the data is very
strong," added Tanase.
The euro last stood at $1.0537, wallowing near a
one-week low of $1.0533.
Investors were also awaiting the conclusion of the European
Central Bank's March meeting on Thursday. There is little
expectation that ECB President Mario Draghi will announce
changes to the bank's ultra-loose monetary policy despite rising
(Editing by Kim Coghill)