Dollar falls after US job growth slows down
NEW YORK: The dollar fell to seven-month lows after data showed the US economy created fewer jobs than expected last month but Wall Street equities shrugged off the news to hit new highs, and an index of global equity markets also set a record.
US job growth slowed last month and employment gains in the prior two months were not as strong as previously reported, suggesting the labour market was losing momentum despite the unemployment rate falling to a 16-year low of 4.3%.
The lacklustre job growth data lifted gold prices to a near six-week peak as the report lowered expectations for the Federal Reserve to raise interest rates later this year after a hike that most analysts still anticipate later this month.
Nonfarm payrolls increased 138 000 last month as the government, manufacturing and retail sectors lost jobs, the labour department said. The US economy created 66 000 fewer jobs than previously reported in March and April. Still, investors continue to give both the economy and President Donald Trump’s administration the benefit of the doubt. – Reuters