Dollar falls against yen after weak US jobs data

By Chibuike Oguh

NEW YORK, Aug 7 (Reuters) - The dollar fell against large currencies including the yen and euro connected Friday aft information showed U.S. employment unexpectedly declined ‌in July, raising concerns astir the system and however the Federal Reserve whitethorn respond ‌with involvement rates.

The U.S. system mislaid 23,000 jobs successful July, Labor Department information showed, compared with economists' expectations for an summation ​of 80,000 jobs successful a Reuters poll.

Data besides showed that the U.S. unemployment complaint fell to 4.1% past month, pushing the labour information complaint to a adjacent 5-1/2-year debased of 61.4%.

The dollar weakened against the yen aft the report, shedding gains made successful caller days successful the aftermath of a ‌historic involution past week betwixt Japanese ⁠and U.S. authorities, which had pushed it to a 13-week low.

It was past down 0.52% to 157.62 yen.

"The large driblet that we saw this greeting ⁠is astir wholly related to the US employment study for July due to the fact that I deliberation nary 1 truly expected non-farm payrolls to beryllium antagonistic oregon that determination would beryllium a large downward revision successful the ​June numbers," ​said Thierry Wizman, planetary FX and rates strategist ​at Macquarie Group.

"I'm inclined to deliberation that ‌the marketplace has shifted the Fed hike into October oregon December alternatively of September. That's the main crushed for the dollar's decline. The marketplace thinks that the Federal Reserve is going to instrumentality into relationship however choky the labour marketplace is. So anytime you spot a people that suggests the U.S. system is anemic oregon that the labour marketplace is not arsenic beardown arsenic ‌otherwise thought, they efficaciously propulsion retired the imaginable of ​a Fed complaint hike."

U.S. Treasury yields fell sharply pursuing the ​report. The 2-year enactment yield, which ​typically moves successful measurement with Fed complaint expectations, fell 5.19 ground points to 4.193%. The output ‌on benchmark U.S. 10-year notes fell 2.67 ground points to 4.643%.

Markets ​are present pricing successful ​a astir 56% accidental that the Fed volition clasp rates successful September, up from 45% a time earlier, according to the CME's FedWatch tool.

The euro was past up 0.31% ​against the dollar astatine $1.1559.

The dollar index, ‌which measures the greenback against a handbasket of currencies including the yen and ​the euro, fell 0.46% to 99.49.

Gold roseate arsenic the U.S. dollar fell. Spot golden roseate 2.28% to $4,336.09 an ounce.

(Reporting by Chibuike ​Oguh; Editing by Nick Zieminski and Alexander Smith)