Jan. 30 — The dollar was little changed against the euro and yen amid speculation the Federal Reserve will cut interest rates by a half-percentage point today to prevent the U.S. from falling into recession.

The currency pared losses after a private report based on payroll data indicated companies in the U.S. added more jobs in January than economists forecast. A government report then showed the economy weakened more than forecast in the fourth quarter as the housing slump deepened.

“We are getting a mixed signal here,” said Nick Bennenbroek, head of currency strategy in New York at Wells Fargo & Co. The Fed “will lean toward downside risks to growth. If that’s the case, the dollar will weaken”

The dollar traded at $1.4787 per euro at 9:19 a.m. in New York, compared with $1.4776 yesterday. The U.S. currency traded at 107.24 yen, compared with 107.11 yesterday. The euro traded at 158.56 yen, compared with 158.27.

Futures contracts on the Chicago Board of Trade indicate a 80 percent chance the Federal Reserve will cut the 3.5 percent target rate for overnight lending between banks by a half- percentage point. The likelihood of a reduction of a quarter- percentage point is 20 percent.

The U.S. Dollar Index traded on ICE Futures in New York, which tracks the dollar against six major currencies, fell to 75.50 today, from 75.55 yesterday. The index dropped to 74.48 on Nov. 23, the weakest since the gauge started in 1973.

Qatar is studying a plan to revalue the riyal following the slump in the U.S. dollar, Deputy Prime Minister Abdullah bin Hamad al-Attiyah said today.

Dollar and Qatar

“The weak dollar impacts Qatar negatively as it weakens the purchasing power of the riyal,” al-Attiyah said in a Bloomberg Television interview in Dohar. “The central bank and finance ministry are discussing a possible revaluation, but I can’t comment on what conclusion they will come to.”

The U.S. House approved yesterday a $146 billion economic stimulus plan aimed at averting an election-year recession. The dollar may draw only a limited benefit from the plan, said Jan Loeys, head of global-market strategy at JPMorgan Chase & Co.

“The connection between fiscal policy and the dollar has been quite weak historically when the economy is in recession and rates are declining,” Loeys said.

Companies in the U.S. added 130,000 jobs, ADP Employer Services said. The median forecast of 21 economists surveyed by Bloomberg News was for an increase of 40,000. Estimates ranged from a drop of 15,000 to a gain of 95,000.

Economic growth slowed to an annual rate of 0.6 percent in October through December, half the rate forecast, following a 4.9 percent pace the previous three months, the Commerce Department said in Washington. Residential construction dropped by the most in 26 years.