NEW YORK: The dollar fell against the euro and Japanese yen on Friday after the US 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.
Dollar gains on solid data, euro drops
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.
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