U.S. Dollar Lower As Weak Jobs Data Heightens Rate Cut Hopes

(RTTNews) - The U.S. dollar dipped against its major counterparts in the New York session on Friday, as weaker-than-expected jobs data for July raised hopes of 50 basis point cut in September.

Data from the Labor Department showed that non-farm payroll employment climbed by 114,000 jobs in July after jumping by a downwardly revised 179,000 jobs in June.

Economists had expected employment to rise by 175,000 jobs compared to the surge of 206,000 jobs originally reported for the previous month.

The unemployment rate rose to 4.3 percent in July from 4.1 percent in June. Economists had expected the unemployment rate to remain unchanged.

The dollar index was down 1.06 percent at 103.23.

Following the data, investors are pricing in a 74.5 percent chance of a 50 basis point cut at the next policy meeting in September.

The greenback fell to a 4-1/2-month low of 146.58 against the yen, 6-month low of 0.8593 against the franc and a fresh 2-week low of 1.0917 against the euro, from yesterday's close of 149.32, 0.8729 and 1.0791, respectively. The currency is seen finding support around 142.00 against the yen, 0.84 against the franc and 1.10 against the euro.

The greenback weakened to 1.2840 against the pound, from more than a 4-week high of 1.2707 hit at 3:15 am ET. The pair was worth 1.2736 at yesterday's close. The currency may locate support around the 1.31 level.

The greenback edged down to 0.6547 against the aussie, reversing from a 2-day high of 0.6486 seen at 8:15 pm ET. The pair was valued at 0.6500 at yesterday's close. If the currency falls further, it is likely to test support around the 0.68 region.

The greenback dropped to an 11-day low of 0.5984 against the kiwi, down from a 2-day high of 0.5930 seen at 8:00 pm ET. At yesterday's close, the pair was quoted at 0.5949. Immediate support for the currency is seen around the 0.63 level.

The greenback declined to 1.3834 against the loonie from Thursday's close of 1.3874. Next near term support for the greenback is likely seen around the 1.34 level.