Dollar Drops as Weak Jobs Report Lowers Rate Hike Fears

The US dollar fell sharply on Friday after data showed that the economy lost 23,000 jobs in July. This unexpected decline lowered concerns about an interest rate hike by the Federal Reserve.

Stocks rose as a result of this weak job report. The S&P 500 gained 0.6 percent to close at a new record, while the tech-focused Nasdaq increased by over one percent. The Dow also closed in the black.

Nearly every European market ended higher, with Paris, Frankfurt, and Milan reaching all-time highs.

Thomas Ryan from Capital Economics said that this data would likely revive concerns among Fed officials about the health of the labor market and make them less inclined to commit to near-term tightening.