Dollar Slumps on Weak Jobs Data, Hike Expectations Pushed Out
The dollar fell against major currencies on Wednesday after the US economy unexpectedly lost 23,000 jobs in July, fueling concerns about its strength and undermining expectations for a Federal Reserve interest rate hike.
The Labor Department reported that the unemployment rate dropped to 4.1% as the labor participation rate hit a near five-and-a-half-year low of 61.4%. The dollar weakened against the yen after the report, shedding gains made in recent days following a historic intervention between Japanese and US authorities.
The euro rose 0.39% against the dollar to $1.1568, while gold increased by 2.55% to $4,347.29 an ounce as the greenback fell.
Markets now put a 56% chance that the Fed will hold rates steady in September, up from 45% a day earlier, according to the CME's FedWatch tool.