* Graphic: World FX rates tmsnrt.rs/2RBWI5E

    By David Henry and Ritvik Carvalho
    NEW YORK/LONDON, Feb 3 (Reuters) - The dollar's rebound
slowed on Wednesday with the euro and Japanese yen holding near
widely watched levels as foreign exchange markets looked for
clues to their next move, possibly from the U.S. jobs report on
    The euro hung just above a two-month low of $1.20
as the yen spent a second day around 105.
    The broader dollar index was up 0.05% at 91.134 in
morning trading in New York after rising to a two-month high of
91.283 during the previous session.
    The dollar is up 1.3% this year as investors look to a
widening disparity between the strength of the U.S. and European
pandemic recoveries.
    "The dollar bounce has slowed but may not be over,"
strategists at Brown Brothers Harriman wrote on Wednesday.
    The battle seems be between the U.S. economic growth and
vaccination advantages versus the appetite for currency
diversification and investment risk that usually works against
the dollar, the strategists said.
    The euro largely shrugged off news that former European
Central Bank chief Mario Draghi had accepted a request to try to
form a new Italian government even as European bond and stock
markets cheered.
    Nor were currency markets moved by a U.S. report that hiring
by private employers rebounded more than expected in January.
The ADP National Employment Report showed private payrolls
increased by 174,000 jobs in the month when economists were
expecting an additional 49,000.
    Though the ADP report has a spotty record predicting the
private payrolls count in the U.S. government's employment
report because of methodology differences, it is still watched
for clues on the labor market's health.
    Economists expect the closely watched government report due
on Friday to show U.S. nonfarm payrolls increased by 50,000 jobs
in January.
    The dollar's advances have come despite a rally in equities
and improving risk sentiment, defying the currency's historical
inverse directional relationship with stocks.
    However, many analysts expect that correlation to reassert
itself as the year progresses and for the dollar to decline with
global growth supported by massive fiscal stimulus and
ultra-easy monetary policies which could kindle inflation.
    The yen has been steady against the dollar after the
greenback benefited from a long and massive bout of
    "It's been a nice run for the yen in terms of strength, but
I think there’s maybe some tiring of that move and some
retracement," said Bart Wakabayashi, Tokyo branch manager of
State Street Bank and Trust.
    Currency bid prices at 9:46AM (1446 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct       High Bid    Low Bid
                                              Previous                   Change
 Dollar index                 91.1340        91.0960     +0.05%         1.281%        +91.3080    +90.9880
 Euro/Dollar                  $1.2028        $1.2045     -0.14%         -1.56%        +$1.2050    +$1.2005
 Dollar/Yen                   104.9900       105.0900    -0.04%         +1.70%        +105.1000   +105.0000
 Euro/Yen                     126.27         126.40      -0.10%         -0.51%        +126.5200   +126.1500
 Dollar/Swiss                 0.8989         0.8975      +0.15%         +1.60%        +0.9000     +0.8971
 Sterling/Dollar              $1.3660        $1.3670     -0.07%         -0.01%        +$1.3683    +$1.3620
 Dollar/Canadian              1.2792         1.2781      +0.09%         +0.46%        +1.2811     +1.2764
 Aussie/Dollar                $0.7618        $0.7608     +0.14%         -0.96%        +$0.7626    +$0.7602
 Euro/Swiss                   1.0810         1.0806      +0.04%         +0.03%        +1.0818     +1.0796
 Euro/Sterling                0.8803         0.8810      -0.08%         -1.50%        +0.8822     +0.8803
 NZ                           $0.7200        $0.7192     +0.14%         +0.29%        +$0.7225    +$0.7187
 Dollar/Norway                8.5950         8.6050      -0.17%         +0.03%        +8.6330     +8.5850
 Euro/Norway                  10.3400        10.3600     -0.19%         -1.21%        +10.3775    +10.3327
 Dollar/Sweden                8.4117         8.3955      +0.14%         +2.63%        +8.4390     +8.3860
 Euro/Sweden                  10.1190        10.1050     +0.14%         +0.42%        +10.1419    +10.1029

 (Reporting by David Henry in New York and Ritvik Carvalho in
London; Editing by Kirsten Donovan)