(March 09, 2018) The U.S. dollar fell on Friday after rallying to a one week high after the U.S. jobs report showed inflation remained weak.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.10% to 90.02 by 11:24 AM ET (16:24 GMT), after reaching a one-week high of 90.34 after the release of the jobs data.
The economy added nonfarm payrolls of 313,000 in February, which was more jobs than expected, according to data released payrolls processor ADP on Friday. Hourly average earnings rose 0.1% month-on-month, below a forecast of 0.2%.
The low earnings numbers eased investor concern about the possibility of rising inflation. However, the dollar was pressured by concern that the Federal Reserve won’t raise interest rates higher than expected. Lower interest rates encourages investors to invest in other assets besides currency.
Earlier Friday, the Bank of Japan left its monetary policy unchanged and offered no new clues on when and how it might begin winding down its stimulus measures.USD/JPY was up 0.67% at 106.92, while USD/CHF fell 0.18% to 0.9494.
The euro tinched higher, with EUR/USD up 0.11% at 1.2324, while GBP/USD rose 0.46% to 1.3872
Elsewhere, the Australian dollar was stronger, with AUD/USD up 0.69% at 0.7842, while NZD/USD increased 0.37% to 0.7290.