Investing.com - The dollar dropped against the other main currencies on Tuesday after a report showing weaker than expected U.S. jobs growth in September bolstered expectations that the Federal Reserve will delay plans to start reducing stimulus.
During U.S. morning trade, the dollar fell to 23-month lows against the euro, with EUR/USD advancing 0.76% to 1.3784.
The Department of Labor said the U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000. The previous month’s figure was revised up to a gain of 193,000 from a previously reported increase of 169,000.
The unemployment rate ticked down to a four-and-a-half year low of 7.2% from 7.3% in August, but this was partially due to more people dropping out of the labor force.
The jobs report was released 18 days behind schedule due to disruption caused by the recent U.S. government shutdown.
The disappointing data cemented expectations that the Fed would postpone plans to start scaling back its asset purchase program until at least the beginning of next year.
The dollar fell sharply against the other major currencies last week as concerns over the impact of the 16-day government shutdown on the U.S. economic recovery saw investors reevaluate the timescale for a possible reduction in Fed stimulus.
Elsewhere, the dollar was off highs against the yen, with USD/JPY edging up 0.02% to 98.20.
The dollar fell to more than two week lows against the pound, with GBP/USD rising 0.48% to 1.6224.
The pound had little reaction after data released on Tuesday showed that the U.K. public sector deficit narrowed to GBP11.1 billion in September from GBP12.1 billion in September 2012.
The dollar fell to 20-month lows against the Swiss franc, with USD/CHF dropping 0.76% to 0.8951.
The greenback was broadly weaker against its Australian, New Zealand and Canadian counterparts, with AUD/USD climbing 0.72% to 0.9724, NZD/USD rallying 0.96% to 0.8536 and USD/CAD down 0.27% to 1.0275.
In Canada, official data on Tuesday showed that retail sales rose 0.2% in August, slightly below forecasts for a 0.3% gain. Core retail sales rose 0.4%, better than expectations for a 0.2% increase.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.55% to an eight-month trough of 79.31.
During U.S. morning trade, the dollar fell to 23-month lows against the euro, with EUR/USD advancing 0.76% to 1.3784.
The Department of Labor said the U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000. The previous month’s figure was revised up to a gain of 193,000 from a previously reported increase of 169,000.
The unemployment rate ticked down to a four-and-a-half year low of 7.2% from 7.3% in August, but this was partially due to more people dropping out of the labor force.
The jobs report was released 18 days behind schedule due to disruption caused by the recent U.S. government shutdown.
The disappointing data cemented expectations that the Fed would postpone plans to start scaling back its asset purchase program until at least the beginning of next year.
The dollar fell sharply against the other major currencies last week as concerns over the impact of the 16-day government shutdown on the U.S. economic recovery saw investors reevaluate the timescale for a possible reduction in Fed stimulus.
Elsewhere, the dollar was off highs against the yen, with USD/JPY edging up 0.02% to 98.20.
The dollar fell to more than two week lows against the pound, with GBP/USD rising 0.48% to 1.6224.
The pound had little reaction after data released on Tuesday showed that the U.K. public sector deficit narrowed to GBP11.1 billion in September from GBP12.1 billion in September 2012.
The dollar fell to 20-month lows against the Swiss franc, with USD/CHF dropping 0.76% to 0.8951.
The greenback was broadly weaker against its Australian, New Zealand and Canadian counterparts, with AUD/USD climbing 0.72% to 0.9724, NZD/USD rallying 0.96% to 0.8536 and USD/CAD down 0.27% to 1.0275.
In Canada, official data on Tuesday showed that retail sales rose 0.2% in August, slightly below forecasts for a 0.3% gain. Core retail sales rose 0.4%, better than expectations for a 0.2% increase.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.55% to an eight-month trough of 79.31.