Dollar Falls after U.S. Payrolls Rose Slower than Expected


Dollar Falls after U.S. Payrolls Rose Slower than ExpectedThe dollar declined from its highest level in 14 months after data showed that U.S. employers absorbed fewer workers than expected in August, reducing bets the Federal Reserve Chair Janet Yellen may hike borrowing costs earlier than expected.

The yen advanced 0.3 percent to trade at 105.01 per dollar after earlier declining to 105.71, its lowest level since October 2008. The euro jumped up to 0.3 percent to $1.2988 before dropping to $1.2920 on Thursday, its weakest since July 2013.

The Labor Department reported that employment rose by 142,000 workers, compared with a projection of 230,000. The yen dropped after the Bank of Japan retained its stimulus measures while the euro fell after the European Central Bank lowered interest rates.

“It puts the market on the back foot,” Douglas Borthwick, a New York-based head of foreign exchange at  brokerage Chapdelaine & Co., told Bloomberg News. “It will probably come up for conversation at the next Fed meeting, but I can’t see this changing Yellen’s view in any way. I think that the Fed continues to have this thought that they’ll be raising rates sooner than other countries.”

Meanwhile, the Canadian dollar dropped against most peers after the number of workers in active employment dropped by 11,000 last month. The loonie slid 0.1 percent versus the U.S. dollar to C$1.0885.

The pound dropped ahead of the Sept. 18 vote for Scottish independence on speculation a victory for nationalists advocating for separation from U.K. may push investors to sell the currency. The sterling dropped 0.2 percent on Friday to $1.6303, bringing its total decline this week to 1.8 percent.To register for a free 2-week subscription to ForexMinute Premium Plan, visit

To contact the reporter of this story; Yashu Gola at