The dollar index (DXY00) on Friday fell by -0.09% and posted a 7-week low. The dollar on Friday was under pressure after the U.S. Feb unemployment report bolstered expectations for the Fed to begin cutting interest rates by the June FOMC meeting. Friday’s fall in the 10-year T-note yield to a 5-week low was also bearish for the dollar. The dollar recovered from its worst levels Friday after stocks gave up an early advance and turned lower, boosting liquidity demand for the dollar.
U.S. Feb nonfarm payrolls rose +275,000, stronger than expectations of +200,000. However, Jan payrolls were revised downward to +229,000 from the previously reported +353,000. The Feb unemployment rate rose +0.2 to a 2-year high of 3.9%, showing a weaker labor market than expectations of no change at 3.7%.
