US dollar drops to six-week low after softer-than-expected jobs data
Business
US dollar drops to six-week low after softer-than-expected jobs data
NEW YORK (Reuters) - The dollar fell to a six-week low on Friday, after data showed the world's largest economy created fewer jobs than expected last month, reinforcing expectations the Federal Reserve is likely to hold interest rates steady again at its December meeting.
The dollar index, a gauge of the greenback against six major currencies, dropped 0.8% to 105.29, after earlier sinking to 105.23 , its lowest since September 20. The index was on track for its largest one-day fall since July. The euro was last up 0.8% at $1.0709, and thanks to gains earlier in the week was headed for a weekly gain of 1.4%, the largest since July.
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 (jobs) slowdown will likely keep the Fed on the sidelines going forward. One of their key concerns has been an overheated economy, especially after last quarter's GDP growth, and this suggests that problem is going away," said Brad McMillan, chief investment officer at Commonwealth Financial Network in Waltham, Massachusetts.
"Slower growth is still growth, and this jobs report is still in the sweet spot. We do see signs, however, that more weakness may be ahead," he added.
Against the yen, the dollar slid 0.6% to 149.53 yen , capping a whirlwind week, in which the Japanese currency touched a one-year low against the dollar and 15-year trough against the euro.
The drop in the yen came after the Bank of Japan tweaked its yield curve control policy on Tuesday, but not by as much as markets had expected.
