Dollar Tumbles Amid Weak U.S. Jobs Data and Fed Speculation
The dollar experienced a significant drop after U.S. employment data revealed fewer job additions than expected in July, prompting speculation about potential rate cuts by the Federal Reserve. The currency's decline was compounded by downward revisions to June's job gains and the Fed's cautious stance on interest rate cuts.
The dollar fell sharply on Friday, recording its steepest daily loss against the yen since January 2023. This downturn came after U.S. employment figures showed a disappointing number of jobs added in July, leading market participants to speculate about possible Federal Reserve rate cuts.
The decrease in the dollar's value was exacerbated by a downward revision of June's job gains, adding fuel to the fire as traders recalibrated their expectations for the Fed's monetary policy moves. The dollar index dropped 1.23%, while the euro and yen saw respective gains against the greenback.
Market watchers are now closely monitoring upcoming jobs data for August, as the Federal Reserve's next meeting looms in mid-September. The currency market remains volatile, with broader implications tied to President Trump's tariff policies and their impact on international trade dynamics.
(With inputs from agencies.)
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