Strong manufacturing report gives dollar a boost

Worries that the US is dropping back into recession has led some investors to expect the Federal Reserve could announce a new round of support for the economy as soon as its September meeting.Analysts say a weak US jobs report on Friday could push the Fed to act.But the manufacturing report the Commerce Department said factory orders climbed 2.4 percent in July, the largest increase since March helped ease some fears about the economy.The euro fell to $1.4395 from $1.4447, while the British pound dropped to $1.6271 from $1.6312.Despite fears about the European debt crisis, the euro remains stronger this year. Trading has been volatile in summer, but the common currency has stuck largely in a range from $1.40 to $1.45.But fears about the viability of the euro currency union and stagnating growth in the US have propelled the Swiss franc and Japanese yen as the safe haven currencies of choice.The Swiss and Japanese central banks have both taken moves in August to try to curb the gains in their currencies.The dollar slipped to 76.52 Japanese yen from 76.72 yen on Wednesday, approaching its post-World War II low of 75.92 yen from earlier this month. The dollar tumbled to 0.8021 Swiss franc from 0.8193 Swiss franc still a ways from its record low of 0.7062 struck on August 9. The franc had nearly hit parity against the euro.Investors had speculated that the Swiss government would try another very aggressive measure to curb the gains in the franc at a regularly scheduled meeting Tuesday night, said MF Global analyst Jessica Hoversen. But the government made no such announcement.The Swiss National Bank had earlier this month pumped franc into markets in an effort to weaken the currency.In other trading Wednesday, the dollar was nearly unchanged at 97.83 Canadian cents from 97.82 cents.