Dollar Weakens As U.S. Job Growth Cools

(RTTNews) - The U.S. dollar was lower against its major counterparts in the New York session on Friday, as softer-than-expected job growth in July sparked speculation that the Federal Reserve has neared the end of the tightening cycle.

Data from the Labor Department showed that non-farm payroll employment climbed by 187,000 jobs in July after rising by a downwardly revised by 185,000 jobs in June.

Economists had expected employment to jump by 200,000 jobs compared to the addition of 209,000 jobs originally reported for the previous month.

The unemployment rate edged down to 3.5 percent in July from 3.6 percent in June. Economists had expected the unemployment rate to remain unchanged.

U.S. stocks rose as jobs data reduced the possibility of further rate hikes from the Fed this year.

The greenback declined to 4-day lows of 0.8699 against the franc and 141.64 against the yen, from Thursday's close of 0.8739 and 142.52, respectively. The greenback is seen finding support around 0.85 against the franc and 138.00 against the yen.

The greenback weakened to a 4-day low of 1.1029 against the euro and a 2-day low of 1.2783 against the pound, from yesterday's closing values of 1.0949 and 1.2708, respectively. The greenback is likely to find support around 1.12 against the euro and 1.31 against the pound.

The greenback fell to 2-day lows of 0.6608 against the aussie and 0.6131 against the kiwi, from yesterday's closing quotes of 0.6550 and 0.6077, respectively. The greenback may face support around 0.68 against the aussie and 0.63 against the kiwi.

The greenback eased to 1.3340 against the loonie, from more than a 2-month high of 1.3393 seen at 8:30 am ET. At yesterday's close, the pair was quoted at 1.3352. If it drops further, it may find support around the 1.30 area.