U.S. Dollar Plummets Amid Weak Jobs Data Sparking Rate Cut Speculation
The U.S. dollar fell sharply as monthly jobs data revealed fewer jobs created than expected, prompting speculation of a Federal Reserve rate cut. Key currency pairs saw the dollar weaken, while U.S. Treasury yields dropped. Wall Street indices rose, and gold reached record highs amid economic uncertainty.
The U.S. dollar took a significant hit on Friday, weakening against major currencies following weak job numbers that fell short of economists' expectations. The Labor Department confirmed nonfarm payrolls rose by just 22,000 in the past month, a stark contrast to the anticipated 75,000, triggering forecasts of a Federal Reserve interest rate reduction.
Following the report, the dollar depreciated by 0.99% to 147.03 against the Japanese yen and declined 0.99% to 0.7998 against the Swiss franc. The euro climbed 0.79% to $1.174425, poised for weekly gains. Juan Perez of Monex USA attributed the hiring struggles to increased costs born from trade policy changes.
U.S. Treasury yields and Wall Street indices reflected mixed sentiments, with benchmark 10-year notes dropping 10.4 basis points to 4.072%. Traders are now considerably pricing possible Fed rate cuts, while gold reached new highs amid currency volatility. The pound also rose after political turbulence in the UK.
(With inputs from agencies.)
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