The dollar index (DXY00) Friday fell by -0.86% and posted a 2-week low. Friday’s weaker-than-expected U.S. Jun nonfarm payrolls report weighed on the dollar. Also, strength in the yen undercut the dollar after the yen rallied to a 2-week high against the dollar Friday on signs of wage pressures in Japan, which may prompt the BOJ to adjust its easy policy stance as soon as this month’s meeting.
U.S. Jun nonfarm payrolls rose +209,000, weaker than expectations of +230,000 and the smallest increase in 2-1/2 years. Also, May nonfarm payrolls were revised lower to +306,000 from the initially reported +339,000. The Jun unemployment rate fell -0.1 to 3.6%, right on expectations.
