FOREX-US dollar gains vs euro as ECB, G20 meetings loom

By Steven C. Johnson

NEW YORK, April 1 (Reuters) - The U.S. dollar rose against the euro but was little changed against the yen on Wednesday as caution before a Group of 20 summit and a European Central Bank meeting blunted news of more U.S. job losses last month.

The ECB is expected to cut its benchmark interest rate to 1.0 percent on Thursday and markets are on alert for any sign that officials are moving toward unconventional policy measures such as buying corporate or government debt to boost the money supply.

That overshadowed data from ADP Employer Services showing the United States shed another 742,000 private sector jobs in March which strategists said bodes ill for the government's more comprehensive employment report on Friday.

"The jobs numbers are pretty bad, but people have settled into accepting that reality," said UBS currency strategist Brian Kim. "There's more concern with positioning ahead of the G20 and ECB meetings."

The euro was changing hands at $1.3220 , down 0.2 percent. The dollar was unchanged at 98.92 yen while the euro was also little changed at 130.80 yen .

The yen was hit by a record low in the Bank of Japan's Tankan survey of manufacturer confidence, adding to fears of a a deepening recession for the Japanese economy.

Sterling rose 0.6 percent to $1.4404 after data showed the rate of decline in Britain's manufacturing sector eased by more than expected last month. A U.S. report also showed the pace of manufacturing contraction slowed slightly.

The dollar had climbed even higher after Bloomberg reported President Barack Obama was leaning toward bankruptcy for General Motors and Chrysler but retreated when the White House said the report was "not accurate."

Uncertainty tends to attract safe-haven flows into the dollar from higher-yield currencies and assets such as stocks.