Dollar Surges Amid Volatile Trading After Surprising Jobs Report
The dollar rose as U.S. employment data revealed a slower job growth in August. Despite initial losses, the dollar recovered, supported by a sell-off in risky assets. The Federal Reserve may consider gradual interest rate cuts, while the labor market shows signs of steady slowdown.
The dollar surged in volatile Friday trading following a mixed U.S. employment report that showed slower-than-expected job growth in August. Despite initial losses against most major currencies, the dollar rebounded, bolstered by a sell-off in risky assets.
Nonfarm payrolls increased by 142,000 jobs last month, falling short of predictions for 160,000. This compared to a revised 89,000 increase in July. The data suggests a steady labor market slowdown, likely influencing the Federal Reserve's approach to interest rate cuts.
Analysts, like Gennadiy Goldberg from TD Securities, noted the employment report leaves room for both modest and significant rate cuts. The dollar's strength was further highlighted as it gained against the euro, which fell to $1.108225, and the Japanese yen. Amid this economic backdrop, the Federal Reserve may shift its focus from inflation control to preventing job market deterioration.
(With inputs from agencies.)
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