NEW YORK – The American dollar retreated from earlier gains on Friday following the release of employment figures that showed a surprising drop in job creation during February, raising expectations that interest rate cuts could come sooner than markets had anticipated.
February’s employment report revealed the U.S. economy shed 92,000 positions, a stark contrast to January’s revised figure of 126,000 new jobs added. Financial analysts surveyed by Reuters had predicted the creation of 59,000 new positions, based on January’s initially reported gain of 130,000 jobs.
Currency markets responded immediately to the news. The dollar’s value against the Japanese yen remained relatively stable at 157.61, down from 157.905 recorded moments before the employment data was released. Meanwhile, the dollar index pulled back from earlier increases, ending the trading session essentially unchanged at 99.10.
