The US dollar tumbled on Friday after a soft US nonfarm payrolls report prompted investors to push back their expectations for when the Federal Reserve might raise interest rates. The greenback made a quick recovery soon after the data though.
The US employment report showed nonfarm payrolls rose 142,000 in September, which was short of the consensus forecast, and August’s reading was revised downward.
The jobless rate held at 5.1 per cent but perhaps most worrying was news that average earnings growth stagnated at an annual rate of 2.2 per cent.
US and European equities and commodity prices staged strong recoveries from losses incurred after the release of the data. In New York, the S&P 500 fell as much as 1.6 per cent in early trade but turned that decline into a 1.4 per cent rise to 1,951 by the close. That left the index up 1 per cent over the week.
The dollar dipped against the yen immediately after the data to 118.67 before recovering to around 119.90.
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