US Dollar drops as unemployment rate rises

The US Dollar (USD) fell against the euro and Japanese yen on Friday after the U.S. economy added more jobs than expected in August, though a rise in the unemployment rate to 3.8% and moderation in wage growth pointed to easing labor market conditions.

Employers added 187,000 jobs in August, above expectations for a 170,000 gain. The unemployment rate rose to 3.8%, above the expected 3.5%. Average hourly earnings rose by 4.3% for the year, below expectations for a 4.4% gain.

Data for July was also revised lower to show 157,000 jobs added instead of the previously reported 187,000.

“Today’s jobs report provides investors the best of both worlds. It’s the labor market softening just enough to keep the Fed at bay while it’s strong enough to prevent an economic recession,” said Michael Arone, chief investment strategist at State Street Global Advisors in Boston.

The dollar index was last down 0.18% at 103.42. The euro rose 0.18% to $1.0862. The greenback fell 0.56% to 144.725 Japanese yen , and got as low as 144.44, the lowest since Aug. 11.

Fed funds futures traders are now pricing in a 93% likelihood that the Federal Reserve will leave rates unchanged at its September meeting and see only a 35% chance of a hike in November, according to the CME Group’s FedWatch Tool.

Currency bid prices at 9:00AM (1300 GMT)

Description	RIC	Last	U.S. Close Previous Session	Pct Change	YTD Pct Change	High Bid	Low Bid
Dollar index		103.4200	103.6300	-0.18%	-0.068%	+103.7700	+103.2600
Euro/Dollar		$1.0862	$1.0843	+0.18%	+1.38%	+$1.0882	+$1.0829
Dollar/Yen		144.7250	145.5450	-0.56%	+10.39%	+145.6950	+144.4400
Euro/Yen		157.20	157.80	-0.38%	+12.05%	+157.9600	+157.0600
Dollar/Swiss		0.8810	0.8834	-0.27%	-4.72%	+0.8843	+0.8796
Sterling/Dollar		$1.2690	$1.2672	+0.16%	+4.95%	+$1.2712	+$1.2640
Dollar/Canadian		1.3543	1.3509	+0.26%	-0.03%	+1.3555	+1.3490
Aussie/Dollar		$0.6509	$0.6485	+0.36%	-4.52%	+$0.6521	+$0.6446
Euro/Swiss		0.9568	0.9576	-0.08%	-3.30%	+0.9582	+0.9566
Euro/Sterling		0.8558	0.8554	+0.05%	-3.23%	+0.8573	+0.8549
NZ Dollar/Dollar		$0.6001	$0.5966	+0.60%	-5.47%	+$0.6015	+$0.5945
Dollar/Norway		10.5490	10.6260	-0.37%	+7.88%	+10.6550	+10.5870
Euro/Norway		11.4597	11.5270	-0.58%	+9.21%	+11.5518	+11.4520
Dollar/Sweden		10.9206	10.9484	-0.11%	+4.93%	+10.9878	+10.8956
Euro/Sweden		11.8633	11.8764	-0.11%	+6.40%	+11.9085	+11.8620

 

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