NEW YORK (Bloomberg) — The dollar and yen fell yesterday against most major counterparts as US private employers added more jobs than forecast in August, easing concern the recovery in the world's biggest economy is slowing and fueling risk appetite.

The euro touched a two-week high versus the greenback as overall US employment declined by about half of the amount forecast in a Bloomberg survey. The Canadian dollar was the top performer among the most-traded currencies as investors sought assets linked to growth. The Swiss franc, considered a haven currency, fell against most counterparts. The yen pared losses after data showed slower growth in US service industries.

"The market has taken this quite positively," said John McCarthy, director of currency trading at ING Groep NV in New York. "Risk sentiment has improved dramatically."

The dollar depreciated 0.5 percent to $1.2894 per euro at 4:36 p.m. in New York, from $1.2825 yesterday, and touched $1.2897, the weakest level since Aug. 19. It dropped 1 percent for the past five days, its second weekly loss.

The yen slipped 0.1 percent to 84.37 per dollar, from 84.28, trimming a third weekly gain to 1 percent. It touched 83.60 on Aug. 24, the strongest level since 1995. Japan's currency slid 0.7 percent to 108.83 per euro, from 108.09, little changed for the week.

Stocks climbed, with the Standard & Poor's 500 Index rising 1.3 percent in its fourth straight daily advance.

"The economic numbers have been bad as of late, so the double-dip recession idea has been gaining ground — today's number changes that," said Tim O'Sullivan, chief trader at FOREX.com, a unit of the online currency trading firm Gain Capital in Bedminster, New Jersey.

Europe's shared currency rose for a fourth day against the dollar, the longest winning streak in five weeks, as Labor Department figures showed payrolls excluding those of government agencies climbed 67,000, after a revised 107,000 increase in July that was more than initially estimated. The median estimate in a Bloomberg News survey was a gain of 40,000 private positions. Overall payrolls shed 54,000 jobs, compared with a forecast for a drop of 105,000.

The Canadian dollar climbed 1.4 percent to C$1.0382 per US dollar. New Zealand's dollar, another growth-linked currency and the No. 2 performer today, rose 0.9 percent to 72.08 US cents.

The yen and dollar were lower against most major counterparts even after the Institute for Supply Management's index of US non-manufacturing businesses, which covers about 90 percent of the economy, fell to 51.5 in August from 54.3 the prior month. A decline to 53.2 was forecast.