London, Feb. 7 (Bloomberg) -- The dollar rose against the euro before a report that may show the U.S. economy added jobs in January, adding to evidence the growth may be rebounding. The U.S. currency strengthened to $1.0794 per euro at 7:10 a.m. in London from $1.0842 yesterday. It has shed 2.8 percent against the euro this year. Japan's currency was little changed at 119.97 yen per dollar from 119.82. Payrolls probably rose 67,000 after declining 189,000 in December and November, a survey of economists found. Other reports showed manufacturing and service businesses expanded last month. Signs of growth tend to bolster demand for a nation's assets and the currency to buy them.
``The payrolls number is the only piece of data the markets are focusing on and it may be better than expected,'' said Jeremy Stretch, a currency strategist at RBC Capital Markets. Any gain in the dollar may be short-lived amid investor concern about a U.S.- led war with Iraq, he said. The jobs report is expected to show the unemployment rate held at an eight-year high of 6 percent, according to the survey. Companies need to add 150,000 new jobs a month to push the unemployment rate down, economists said. U.S. President George W. Bush said yesterday ``the game is over'' for Iraq, heightening speculation the U.S. is moving closer to a war. //www.quote.bloomberg.com