Investing.com - The dollar dropped to two-week lows against the other major currencies on Friday, after the release of weak U.S. economic reports dampened optimism over the strength of the economy.
The dollar was lower against the yen, with USD/JPY down 0.83% at 118.93, off highs of 120.41 hit earlier in the day.
The U.S. Labor Department reported that the economy added 142.000 jobs in September, confounding expectations for an increase of 203.000. The U.S. created 136.000 jobs in August, whose figure was revised from a previously estimated gain of 173.000.
The U.S. unemployment rate remained unchanged at 5.1% last month, in line with expectations.
The report also showed that average hourly earnings were flat in September, compared to expectations for a 0.2% rise and after an upwardly revised 0.4% increase the previous month.
Another report showed that U.S. factory orders declined by 1.7% in August, compared to expectations for a 1.2% drop, after a downwardly revised 0.2% gain the previous month.
The weak data fuelled fresh uncertainty over whether or not the Federal Reserve will raise interest rates before the end of the year.
The dollar was also lower against the euro, with EUR/USD advancing 0.88% to two-week highs of 1.1179.
Elsewhere, the dollar pushed lower against the pound and the Swiss franc, with GBP/USD up 0.57% at 1.5219, and with USD/CHF tumbling 1.15% to 0.9661.
Demand for sterling was boosted after research group Markit reported on Friday that its U.K. construction purchasing managers' index rose to a six-month high of 59.9 in September from a reading of 57.3 in August. Analysts had expected the index to tick up to 57.5 last month.
The Australian dollar was steady, with AUD/USD at 0.7033, while NZD/USD climbed 0.60% to 0.6439.
The Australian Bureau of Statistics earlier reported that retail sales rose 0.4% in August, in line with expectations and after a 0.1% slip the previous month.
Meanwhile, USD/CAD slid 0.46% to trade at 1.3205.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, retreated 0.92% to 95.45, the lowest level since September 21.