(Reuters) - The euro hovered near a three-week low against the dollar on Wednesday as uncertainty about a debt swap designed to avoid a Greek default limited investors' enthusiasm for the currency. A report showing U.S. private sector employers added more jobs last month than economists had expected also enhanced the appeal of the greenback that has risen some 1.4 percent against major currencies so far in March. .DXY The euro was unchanged at $1.3110, just above a three-week low of $1.3101, according to Reuters data. The dollar edged up 0.1 percent to 80.94 yen. Greece's creditors have until Thursday to decide whether they will agree to swap their Greek government bonds for lower-value securities, a deal that would shave nearly a third off Greece's 350 billion euro debt load and avoid a messy default. Thirty large creditors have said they would participate, though markets remained concerned about other holdouts, a group that includes Greek pension funds and some foreign investors. "The euro has pared a lot of its overnight gains and that deadline tomorrow is capping the upside and keeping market sentiment cautious," said Omer Esiner, chief analyst at Commonwealth Foreign Exchange. BNY Mellon currency strategist Michael Woolfolk added that "even a successful outcome won't alleviate market concern," adding "we still have to get past the general election next month and a decision will have to be made about whether Greece stays in the euro zone. That's still an open question." Even if the Greek deal goes through, the euro is unlikely to see lasting gains and could retreat to $1.30 by the end of March, said Carl Hammer, chief currency strategist at SEB in Stockholm. A week ago, the euro neared $1.35, its highest level this year. However, doubts about the Greek bond swap and concern about growth in Asia prompted investors to cut risky trades and take refuge in the U.S. dollar. Recent U.S. economic data has also burnished the dollar's appeal, with Wednesday's data showing 216,000 private-sector jobs were added last month adding to the string of positive news. "I think it's something that should continue to support the dollar as it contrasts a lot with the disappointment coming from data overseas, whether from the euro zone or Asia," said Esiner. Earlier this week, China cut its annual growth forecast to 7.5 percent, an eight-year low, raising concern that the long run of super-charged, double-digit growth was ending. That hurt currencies from countries such as Australia, which provides China with raw materials and natural resources, and other countries whose economies are dependant on strong Chinese growth. The Australian dollar at $1.0559 on Wednesday gained 0.1 percent over the last 24 hours but remained well off the 2012 high of $1.0857 hit one week ago. "Global risk appetite and stretched speculative positioning should keep Aussie a sell on rallies to a $1.06 handle," said Sean Callow, currency strategist at Westpac. He expects the Aussie to drop to $1.03-1.04 over the coming weeks

Source