The dollar regained some of its lost ground against other major currencies on Wednesday following US data showing that employment grew rapidly during November.

The dollar rose to $1.3292 against the euro on Wednesday from $1.3326 and to ¥115.19 from ¥114.825, while the pound slipped to $1.9668 from $1.974.

The US figures suggested that official labour statistics due at the end of the week may be strong enough to halt speculation that interest rates may be cut in the new year.

US businesses reportedly added 158,000 workers in November, the strongest figure since June, according to an ADP Employer Services survey.

Odds being taken on the futures market on the likelihood that rates will fall to 5.0 per cent in March have fallen from 100 per cent on Tuesday to 79 per cent likelihood.

A second rate cut in May is also now unlikely, futures rates indicated, running at a 30 per cent likelihood of falling to 4.75 per cent.