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03.07.202602:09:50UTC+00Dollar Holds Decline on Soft Jobs Report

The dollar index remained below 101 on Friday after slumping in the previous session, as softer-than-expected US labor data prompted traders to scale back expectations for Federal Reserve rate increases this year. The US economy added only 57,000 jobs in June, the smallest gain in four months and well under the 110,000 consensus forecast, while the unemployment rate held at 4.2%. That followed Wednesday’s report showing private-sector job growth also missed estimates. Fed funds futures now price in roughly a 50% probability of a rate hike in September, down from 67% before the latest employment figures. Fed Chair Kevin Warsh also noted this week that inflation expectations are moderating, while reiterating the central bank’s commitment to price stability. The dollar index is on course to finish the week lower, breaking a two-week winning streak.

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