July US non-farm payrolls fell by 23,000, missing forecasts and sparking Fed rate cut bets for later this year.
The dollar dropped 0.52% to 157.62 yen after US employment data showed a surprise loss of 23,000 jobs in July, defying expectations for an 80,000 gain. The report also revealed a 4.1% unemployment rate and a labor participation rate at a near 5-1/2-year low of 61.4%.
Economists had anticipated job growth, but the decline, coupled with downward revisions to prior data, raised concerns about economic weakness. The data followed a recent yen intervention by Japanese and US authorities, which had briefly strengthened the dollar.
Markets now expect the Federal Reserve to delay potential rate cuts until October or December, shifting away from earlier September projections. The weak jobs print reinforced expectations that the Fed will prioritize labor market conditions in its policy decisions.