Dollar Slips on Weak US Economic News: DXY Falls -0.05%

The US dollar index DXY fell by -0.05% on Friday due to weak economic news from the US. The September payroll report showed that non-farm payrolls and average hourly earnings rose less than expected, reducing the chance of a Fed rate hike later this month.

Friday's decline in WTI crude oil prices also lowered inflation expectations, which could persuade the Fed to loosen monetary policy, a bearish factor for the dollar. The weaker-than-expected US August factory orders report further pressured the dollar.

However, the dollar recovered from its worst level on Friday after T-note yields erased an early decline and moved higher. Dallas Fed President Lorie Logan's hawkish comments also supported the dollar when she said that the Fed may need to raise interest rates by at least another 50 bp to cool inflation.