Dollar Slides to Three-Month Low as Weak Jobs Data Cools Rate Hike Bets
The U.S. dollar fell to its weakest since May after a disappointing jobs report reduced expectations for a near-term Fed rate hike, boosting the yen and weighing on the greenback.
The U.S. dollar dropped to a three-month low following the release of weaker-than-expected employment figures, which sharply scaled back market bets on a Federal Reserve rate increase next month. The data prompted investors to reassess the near-term path of U.S. monetary policy.
As rate hike expectations faded, the Japanese yen strengthened against the dollar, adding to broad-based selling pressure on the greenback. Markets now increasingly anticipate that the Fed will leave rates unchanged at its upcoming meeting.
The dollar’s decline reflects a broader shift in sentiment, with currency traders repricing the probability of further tightening by the U.S. central bank.
Source: First Squawk