By Karen Brettell
NEW YORK (Reuters) - The U.S. dollar dropped on Friday after jobs growth in August came in below expectations, reducing the likelihood that the Federal Reserve will raise interest rates when it meets later this month.
Nonfarm payrolls rose by 151,000 jobs last month after an upwardly revised 275,000 increase in July, with job losses in manufacturing and construction sectors, the Labor Department said on Friday. The unemployment rate was unchanged at 4.9 percent as more people entered the labor market.
Hawkish statements from Fed Chair Janet Yellen and Vice Chair Stanley Fischer last week had increased expectations that the U.S. central bank is closer to raising rates, though most investors see one increase in December as most likely if the Fed hikes this year.
“There were no positive standouts here, the key underlying data were all pretty soft as well,” said Tom Porcelli, chief U.S. economist at RBC Capital Markets in New York. “This should put to rest the conversation on September.”
The dollar index (DXY), which measures the greenback against a basket of six major currencies, fell 0.24 percent to 95.432, the lowest level since last Friday.
