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Why US dollar falls?

Why US dollar falls?

Business

Why US dollar falls?

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NEW YORK (Reuters) - The dollar on Friday fell to its lowest since September after data showed the world's largest economy created fewer jobs than expected last month, reinforcing expectations that the Federal Reserve is likely to pause hiking interest rates again at the December meeting.

The dollar index dropped 0.6% to 105.437. Against the yen, the dollar slid 0.7% to 149.44 yen.

Data showed nonfarm payrolls increased by 150,000 jobs last month. The numbers for September were revised lower to show 297,000 jobs created instead of 336,000 as previously reported.

"The strongest argument for the Fed to abandon its tightening bias is that wage growth continues to slow," wrote Andrew Hunter, deputy chief US economist, at Capital Economics, in a note after the jobs report.

"Overall, we suspect the softening in labour market conditions has much further to run and still expect the Fed to be cutting interest rates again in the first half of next year."