Dollar pares losses after US payrolls contraction; Chilean peso firms

The dollar fell globally on Friday after US payrolls unexpectedly contracted by 23,000 jobs in July, although selling moderated during the session. The consensus had forecast 80,000 new jobs, and prior months were revised down by 103,000. The dollar index slipped 0.4% and the two-year Treasury yield fell 2.9 basis points as attention turned to next week's US inflation data. Markets assigned roughly 40% probability to a Federal Reserve rate hike in September. In Chile, the peso traded at 913.4 per dollar, down three pesos, while July inflation slowed to 3.5% annually.