Dollar Sinks on Decreasing Payrolls

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The US dollar slumped today after the US non-farm payrolls sank more than expected, suggesting that the Federal Reserve would require to perform additional stimulus measures to support the nation’s economy.

The non-farm payrolls tumbled by 131,000 in July, following the 221,000 drop in June. The median forecast was the 63,000 decrease. The unemployment rate remained at 9.5 percent. The Dollar Index slid 0.8 percent to 80.153, after touching 80.085, the lowest level since April 14th, and is heading for the ninth consecutive weekly loss.

The comment of Lauren Rosborough, the senior currency analyst at Westpac Banking Corp., was:

It solidifies the argument the U.S. is in a slowdown.“The dollar’s on the back foot at least for the next couple of days.

EUR/USD rose to 1.3206 as of 15:10 GMT today from 1.3188, while GBP/USD jumped to 1.5976 after declining to 1.5839. USD/JPY fell to 85.09, following the surge to 86.18.