Dollar Dives on Weak Jobs Report, Interest Rate Hopes Plummet

The US dollar plummeted by over 1 yen to its lowest point in the lower 157 zone after a weak jobs report was released on Friday, casting doubts on an early interest rate hike.

The report showed that nonfarm payrolls fell by 23,000 in July from the previous month, while a rise of around 80,000 was projected. The unemployment rate improved to 4.1 percent from 4.2 percent.

This led to yen-buying speculation that the interest rate gap between the US and Japan may narrow if the Federal Reserve holds off on raising its key interest rate in September while the Bank of Japan moves ahead with a hike in the same month.