Dollar Falls as Weak Jobs Data Eases Rate Hike Fears

The US dollar plummeted on Friday after the release of weak jobs data for July, which led to concerns about an interest rate hike by the Federal Reserve. The report showed that the economy shed 23,000 jobs last month, far below expectations of 80,000 to 100,000 new posts.

This unexpected drop in jobs has given the Fed pause, with economists saying it may make them less inclined to commit to near-term tightening. Thomas Ryan at Capital Economics noted that the data is 'likely to revive concerns among Fed officials about the health of the labor market and make them less inclined to commit to near-term tightening.'

The stock market responded positively to the news, with Wall Street's S&P 500 gaining 0.6 percent to close at a new record. The tech-focused Nasdaq was up more than one percent, and the Dow also closed in the black.