Dollar's Tumultuous Week: Jobs Report and Fed Speculations Stir Markets

The U.S. dollar found some footing on Monday after taking a hit from an underwhelming jobs report and the unexpected firing of a top labor official by President Donald Trump. Investors now anticipate imminent rate cuts by the Federal Reserve to counter the labor market downturn.

Trump's dismissal of Bureau of Labor Statistics Commissioner Erika McEntarfer over alleged data manipulation further rattled markets, along with the sudden resignation of Fed Governor Adriana Kugler, potentially allowing Trump to expedite his influence on the central bank.

The dollar's struggles added volatility to currency markets. It dropped against the yen and euro on Friday but recovered marginally against the yen on Monday. Treasury yields decreased as the market priced in a likely September rate cut, stirring economic anxieties globally.

(With inputs from agencies.)