The dollar fell after weaker-than-expected US jobs data showed the economy added just 57,000 jobs, far fewer than expected.
Trader Robert Charmak works on the floor of the New York Stock Exchange, Friday, Jun 26, 2026. (Photo: AP/Richard Drew)
03 Jul 2026 05:29AM
NEW YORK: The dollar tumbled Thursday (Jul 2) after disappointing US jobs data dampened expectations for a quick interest rate hike, while shifting investor bets from technology to industrial shares lifted the Dow to a fresh record.Total US nonfarm payroll employment grew by 57,000, about half the expected level in a data report that also downgraded jobs growth in the prior two months.The figures removed some of the shine surrounding the US economy, although the figures still pointed to positive job growth.Markets have been girding for a potential rate hike in 2026 after new Federal Reserve Chair Kevin Warsh focused almost entirely on price stability and inflation, viewing the jobs market as strong."The jobs numbers were bad, but what that means is it reduces the likelihood of rate hikes in the short term," said Steve Sosnick of Interactive Brokers.The dollar fell sharply as futures markets lowered the odds of imminent Fed rate cuts.Despite Friday's move in the dollar, the jobs report was "probably not the game changer that some investors were hoping for," said StoneX analyst Fawad Razaqzada. "One soft payrolls report is unlikely to change the Fed's broader outlook, especially with inflation still the central focus for policy makers."US stocks were mixed, with the Dow gaining more than one per cent to finish at a fresh record, while the Nasdaq fell for a second straight session.Briefing.com analyst Patrick O'Hare said declines in semiconductor stocks are unsurprising after the mammoth gains in the second quarter. "You can look at the broader market and you can still see that it's holding up reasonably well in spite of the loss of that leadership group," said O'Hare, adding that other sectors are poised to advance from a rotation out of tech.
