The U.S. dollar depreciated against its major peers in the European session on Friday, as a sharp slowdown in the nation’s job growth for September lessened hopes for a faster tightening of monetary policy by the U.S. Federal Reserve.
Data from the Labor Department showed that U.S. employment increased much less than expected in the month of September.
The non-farm payroll employment rose by 194,000 jobs in September after climbing by an upwardly revised 366,000 jobs in August.
Economists had expected employment to jump by 500,000 jobs compared to the addition of 235,000 jobs originally reported for the previous month.
Despite the much weaker than expected job growth, the unemployment rate fell to 4.8 percent in September from 5.2 percent in August. The unemployment rate was expected to edge down to 5.1 percent.
The U.S. debt ceiling concerns receded after Senate approved a legislation to raise the debt limit by $480 billion that would run through early December.
The bill was passed in a 50-48 vote after Republican Senate leader Mitch McConnell supported a short-term extension.
The dollar rose in the Asian session as U.S. treasury yields climbed before the release of U.S. nonfarm payrolls data that is likely to pave way for a reduction in stimulus.
The greenback fell 0.4 percent to 111.51 against the yen, from an 8-day high of 111.99 seen at 3:30 am ET. The pair had closed Thursday’s deals at 111.61. The greenback is likely to challenge support around the 108.00 mark.
Survey data from the Cabinet Office showed that a measure of the public assessment of the Japanese economy increased in September.
The current conditions index of the Economy Watchers’ Survey, which measures the current situation of the economy, increased to 42.1 in September from 34.7 in August. In July, the reading was 34.7.
The greenback touched 0.9259 against the franc, down by 0.5 percent from a 2-day high of 0.9306 it recorded at 4:15 am ET. At yesterday’s trading close, the pair was quoted at 0.9277. Should the greenback falls further, it is likely to test support around the 0.90 region.
The greenback lost 0.3 percent to reach a 10-day low of 1.3658 against the pound. The GBP/USD pair had ended yesterday’s trading session at 1.3613. The greenback may face support around the 1.38 region, if it falls again.
The greenback reached a 2-day low of 1.1586 against the euro, dropping by 0.4 percent from a 2-day high of 1.1541 it recorded at 1:45 am ET. The pair was worth 1.1550 when it closed deals on Thursday. Next near term support for the greenback is likely seen around the 1.18 level.
Data from Destatis showed that German exports declined unexpectedly in August.
Exports decreased 1.2 percent month-on-month in August, in contrast to the 0.6 percent rise in July. Economists had forecast a monthly growth of 0.5 percent.
The greenback dropped to its weakest level since September 16 against the aussie, at 0.7338. The greenback was worth 0.7307 per aussie at Thursday’s New York session close. The greenback is seen finding support around the 0.75 mark.
The greenback was down against the kiwi, at a 2-day low of 0.6960. At Thursday’s close, the pair was valued at 0.6923. Further fall in the greenback may find support around the 0.72 mark.
The U.S. currency slipped to 1.2480 against the loonie, a level unseen since August 5. The greenback was trading at 1.2548 against the loonie at yesterday’s close. Continuation of the downtrend may lead the currency to a support around the 1.22 region.