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Dollar falls after lackluster US jobs report

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(Globalpost/GlobalPost)

The dollar skidded lower against other major currencies on Friday after the US jobs report came in weaker than expected.

The euro bought $1.3279 around 2100 GMT, up from $1.3208 at the same time Thursday.

The dollar fell to 98.89 yen from 99.52, while the euro slipped against the Japanese currency, to 131.35 yen from 131.45.

"The US dollar is lower, reversing earlier intraday gains after the release of a soft US jobs report," said Nick Bennenbroek of Wells Fargo.

The Labor Department's monthly jobs report came in mixed and weaker than expected.

The unemployment rate fell to 7.4 percent in July from 7.6 percent in June, but on the downside the US added only 162,000 jobs, far short of expectations. Job gains in prior months were revised lower.

"With the market primed for a blockbuster number, today's just-average results were a clear disappointment to dollar bulls," said Boris Schlossberg of BK Asset Management.

Wells Fargo's Bennenbroek said the so-so data did nothing to clarify the future direction of the Federal Reserve's bond-buying program.

"For investors, the key takeaway from the US jobs data is that the potential outcome of the Fed's September monetary policy announcement remains open, with no clear-cut case for the central bank to continue on its present path, or to begin reducing the pace of its bond purchases," he said.

The dollar fell against the Swiss currency to 0.9290 franc from 0.9366 late Thursday.

The pound bought $1.5284, up from $1.5115.

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http://www.globalpost.com/dispatch/news/afp/130804/dollar-falls-after-lackluster-us-jobs-report