Dollar weakens on contrasting economic data

The dollar weakened against the euro and the pound on Wednesday as dueling data on both sides of the Atlantic offered a mixed picture of economic conditions.

Towards 2100 GMT, the euro was at $1.1156, up from $1.1143 the day before, and the dollar stood at 103.43 yen, up from 103.02.

The pound was worth $1.3128, up from $1.3076.

Official figures released Wednesday showed eurozone core inflation below analyst expectations at 0.8 percent in August.

Meanwhile, the payrolls firm ADP said US businesses had added a solid 177,000 positions in July. However, the Chicago purchasing manager's index fell slightly to 51.5 in August, beneath analyst expectations.

"The dollar held towards the upper end of its overnight range until we got the weaker-than-expected Chicago PMI number, which pushed the USD to a session low," said Omer Esiner of Commonwealth Foreign Exchange.

Esiner said he expected fluctuations to remain within a narrow range in advance of Friday's official figures on July US job creation.

"That's really the big event for the week and that's probably the number that will set the tone for the Fed going forwards," he said.

The US Federal Reserve has signaled it is likely to raise US interest rates this year, citing steady job creation as a sign of a healthier domestic economy. Policy makers are due to meet next in the third week of September.

2100 GMT Wednesday Tuesday