Dollar Faces Largest Weekly Drop in Three Months After Weak US Jobs Report

The US dollar is heading toward its largest weekly decline in approximately three months after a weak jobs report for June 2026 diminished market expectations for a US interest rate increase.

The dollar continued to fall during early Asian trading, while the euro hovered near its highest level in two weeks at $1.1442. The British pound remained steady at $1.3361 and is set to achieve a weekly gain of 1.2%, marking its best performance in nearly three months.

The risk-sensitive Australian dollar reached $0.6935, poised to end a four-week losing streak. Meanwhile, the New Zealand dollar traded at $0.5702, having risen 1.2% over the week.

The US dollar index, which tracks the currency against a basket including the yen and euro, declined by 0.2% to 100.77 points after falling 0.5% on Thursday. From the start of the week until now, it has dropped 0.58%, marking its largest weekly fall since early April 2026.

US job growth sharply slowed in June 2026, with nonfarm payrolls increasing by 57,000, significantly below the expected rise of 110,000 jobs. The labor force participation rate fell to 61.5%, its lowest level in over five years.

In the latest trading, the Japanese yen reached 161.01 against the dollar after rising about 1% in the previous session, moving the currency away from its lowest levels in decades amid dollar volatility.