US dollar falls as weak July jobs report cools Fed hike expectations

The dollar fell against major currencies Friday after US employment unexpectedly declined in July, reducing expectations the Federal Reserve will raise interest rates. The Labor Department reported a loss of 23,000 jobs versus an expected gain of 80,000. Markets now see a 56% chance the Fed keeps rates steady in September, up from 45%, and the dollar index fell 0.44% to 99.50. Unemployment dipped to 4.1 percent, but labor participation hit a five-and-a-half-year low. Yields on two-year and ten-year Treasuries declined, and spot gold surged 2.55 percent to $4,347.29.