The dollar fell Friday, after data showing the U.S. created less jobs than expected in August weakened the argument for the Federal Reserve to raise interest rates later this month.


Nonfarm payrolls rose by a seasonally adjusted 151,000 last month, while the unemployment rate held steady at 4.9%, the Labor Department said Friday. Economists surveyed by The Wall Street Journal had expected employers would add 180,000 jobs in August and forecast an unemployment rate of 4.8%.


"This report effectively puts to bed the notion that the Fed will raise rates in September," said Joe Manimbo, an analyst at Western Union. "A raise later this year would hinge on the U.S. economy accelerating from a sluggish first half, so the jury's still out."

Fed-funds futures, which are used to place bets on central bank policy, showed Thursday that investors and traders see a 12% likelihood of a rate increase at the Fed's September meeting, down from 24% a day ago, according to CME Group.

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