Fed Rate Hike Expectations Boost Dollar Amidst Strong US Job Data

The US dollar's decline was limited by a strong job market update from the country on Friday.

Data showing a larger-than-expected addition to non-farm payrolls in the US caused markets to raise expectations of a Fed rate hike. This reversed the impact of dovish comments from Fed Governor Christopher Waller about giving disinflation a chance.

The robust payrolls data release halted the dollar's decline that followed Waller's comments. Data released by the US Bureau of Labor Statistics on Friday showed an addition of 162 thousand to non-farm payrolls in August, much higher than the upwardly revised level of 21 thousand additions in July.