US dollar pares gains after February payrolls fall short of expectations

Friday 06 - 14:45

The U.S. dollar eased against major currencies on Friday after official data revealed an unexpected drop in payrolls for February, raising speculation that the Federal Reserve may lower interest rates sooner than anticipated.

Weak jobs data

According to government statistics, the U.S. economy lost 92,000 jobs in February following a downward revision of January’s payrolls, which were adjusted to show an increase of 126,000 instead of the previously reported 130,000. Analysts surveyed by Reuters had expected payrolls to rise by 59,000 in February, making the actual result significantly below forecasts.

Market reaction

Following the release of the data, the dollar was relatively steady against the Japanese yen at 157.61, compared with 157.905 before the report. The broader dollar index trimmed earlier gains and remained flat for the day at 99.10.

The report signals a potential slowdown in U.S. labor market growth, increasing pressure on policymakers to adjust monetary policy. Investors are closely watching how the Federal Reserve will respond in the coming months, particularly regarding interest rate decisions.