LONDON, March 31: The dollar fell against leading currencies on Thursday amid caution before publication of key US employment data, and after disappointing economic growth figures.

The euro rose to $1.2955 from 1.2911 late on Wednesday in New York.

The dollar fell to 106.86 yen from 107.35 on Wednesday.

Traders were cautious ahead of a raft of US data to be released later in the day, comprising the Chicago purchasing managers’ index of industrial health in the crucial Midwest region, February factory orders and weekly jobless claims.

Friday was to see the latest monthly US non-farm payrolls report.

Some second-order employment conditions data will be evaluated today to shade the risks to Friday’s payroll report, CALYON analyst Mike Carey said.

Friday’s data may indicate whether inflationary pressure was growing to the point where the Federal Reserve would be prompted to accelerate its credit-tightening.

New jobs in the United States were forecast to have breached the 220,000-mark in March and anything less would likely weigh on the dollar, analysts said.

The dollar could break higher but a very strong employment report will be needed to validate such a push, Commerzbank analyst Patrick Bennett said.

The dollar was lower also after the final estimate of US fourth-quarter gross domestic product growth was left unrevised at 3.8 per cent, disappointing market expectations of an upgrade to 4.0 per cent.

The data could signal that the Bank of England might not be in a position to implement the rate rise that markets have already priced in, analysts said.

The BoE left its key interest rate unchanged at 4.75 per cent for the seventh month in a row in March.

The euro was changing hands at 1.2955 dollars against 1.2911 late on Wednesday in New York, 138.40 yen (138.85), 0.6892 pounds (0.6871) and 1.5505 Swiss francs (1.5495).

The dollar stood at 106.86 yen (107.35) and 1.1966 Swiss francs (1.1999). The pound was being traded at $1.8801 (1.8783), 200.90 yen (201.97) and 2.2500 Swiss francs (2.2517).

On the London Bullion Market, the price of an ounce of gold stood at 44427.35 against $426.10 late on Wednesday.—AFP