Dollar's Rally Halted by Weak Jobs Report

The US dollar's three-week rally came to an end on Friday, as a weaker-than-expected September jobs report dampened expectations of a Federal Reserve interest rate hike in October.

According to the Bureau of Labor Statistics, the US economy added just 29,000 jobs in September, far below the consensus estimate of 90,000. The unemployment rate rose to 4.2% from 4.1%, while average hourly earnings increased by only 0.1%.

Markets now see a much lower chance of a Fed hike on October 28, with around one-in-four odds, down from about 70% just a week ago.