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 http://tmsnrt.rs/2egbfVh

(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

added.

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 JPY= , reflecting investor

demand for safer assets after the manufacturing data heightened concerns about the health of the global

economy.

The euro rose 0.1% against the dollar to $1.0944 EUR= but was above Tuesday's two-year low of

$1.0879.

The dollar index, which measures the greenback's value against a basket of six major currencies, was

little changed at 99.13 .DXY 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 AUD=D3 , 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 GBP=D3 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

Session

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/Dollar

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

Euro vs U.S. dollar https://tmsnrt.rs/2opJuzd

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>