Dollar Falls After Jobs Report

By Ira Iosebashvili Features Dow Jones Newswires

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The dollar fell Friday, after U.S. employment data for August came in below expectations.

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The Wall Street Journal Dollar Index, which measures the U.S. currency against a basket of 16 others, was recently down 0.5% to 85.35.

Nonfarm payrolls rose by a seasonally adjusted 156,000 in August from the prior month, the Labor Department said. The unemployment rate rose to 4.4% from 4.3%, though the level remains historically low.

Economists surveyed by The Wall Street Journal had expected 179,000 new jobs and a 4.3% unemployment rate last month. Job growth the prior two months was revised lower.

"This is definitely not a good report for the dollar," said Mark McCormick, head of North American foreign exchange strategy at TD Securities.

Taken with other recent weak reports, it will likely make investors more skeptical that the Federal Reserve will raise rates a third time this year, Mr. McCormick said.

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Expectations that the Fed will raise rates at a gradual pace tend to weigh on the dollar, as lower borrowing costs make the currency less attractive to investors seeking yield.

Write to Ira Iosebashvili at ira.iosebashvili@wsj.com

(END) Dow Jones Newswires

September 01, 2017 09:17 ET (13:17 GMT)