The dollar languished at its lowest in over three weeks early on Monday after an unambiguously disappointing U.S. employment report prompted investors to rule out the chance of a hike in U.S. interest rates this month.
The dollar index .DXY stood at 94.112, having been as low as 93.855 on Friday - a level last seen on May 12. It tumbled 1.6 percent on Friday, posting its second biggest one-day drop this year.
Against the yen, the greenback slid to a one-month low of 106.35 JPY=. The euro climbed to its highest in three weeks at $1.1375 EUR= and has since drifted back to $1.1350.
Federal Reserve Gov. Lael Brainard on Friday called for the central bank to wait for more data before lifting interest rates as she said the jobs report shows the labor market has slowed.
Brainard, who’s the first Fed official to speak since the Labor Department reported just 38,000 jobs were added in May, said the central bank should wait for more data on how the economy is performing in the second quarter, as well as a key vote by Britain on whether to leave the European Union.
U.S. Fed's Mester says gradual rate hikes still appropriate
"I still believe that in order to achieve our monetary policy goals, a gradual upward pace of the funds rate is appropriate," Mester told reporters.
Weak U.S. employment report dims prospect of Fed rate hike
The U.S. economy created the fewest number of jobs in more than 5-1/2-years in May as manufacturing and construction employment fell sharply, which could make it harder for the Federal Reserve to raise interest rates.
Nonfarm payrolls increased by only 38,000 jobs last month, the smallest gain since September 2010, the Labor Department said on Friday. Employment gains were also restrained by a month-long strike by Verizon (VZ.N) workers, which depressed information sector payrolls by 34,000 jobs.
Underscoring the report's weakness, employers hired 59,000 fewer workers in March and April than previously reported. While the unemployment rate fell three-tenths of a percentage point to 4.7 percent in May, the lowest level since November 2007, that was because 458,000 Americans gave up the search for work.
U.S. oil prices tumbled more than 1 percent on Friday, after weekly data showed U.S. drillers added rigs for only the second time this year.
Brent crude futures fell 30 cents to $49.74 per barrel, but were still almost double January lows and on track for an eighth weekly gain in nine weeks.
U.S. West Texas Intermediate (WTI) crude futures settled 55 cents lower, or 1.1 percent, at $48.62 a barrel.
Reference: Reuters, The Fiscal Times, Market Watch, CNBC
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