Dollar Dives Below 157 Yen as Weaker Jobs Report Spurs Rate Hike Fears

The U.S. dollar plummeted to its lowest level against the yen in over three decades after a weaker-than-expected jobs report from the United States sparked speculation that the Federal Reserve may delay raising interest rates.

The dollar fell below the 157 zone, a key psychological barrier for currency traders, as investors reassessed their expectations of an early rate hike by the Fed.

The July jobs report showed nonfarm payrolls contracted by 23,000 in July, missing projections of a rise of around 80,000. Meanwhile, the unemployment rate dipped to 4.1 percent from 4.2 percent.

The data triggered yen-buying on the assumption that the Bank of Japan may raise its key interest rate ahead of the Fed's planned move in September.