The U.S. dollar slipped after data showing weak private-sector job creation in May strengthened expectations of an interest rate cut from the Federal Reserve.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.1% to 96.928 by 10:32 AM ET (14:32 GMT).
The private sector added the fewest jobs in any month since 2010, data from ADP (NASDAQ:ADP) showed. The 27,000 jobs created in May were well below estimates.
The ADP figures are ahead of the more comprehensive government payrolls report on Friday.
The numbers came less than a day after Federal Reserve Chairman Jerome Powell dropped a hint that the Fed would cut interest rates if the economy slowed too much as a consequence of the U.S.’s trade and immigration disputes with China and Mexico.
“We do not know how or when these issues will be resolved,” Powell said, adding that the Fed would “act as appropriate to sustain” the economy.
The dollar hit its lowest in over a year against the safe-haven Japanese yen on the news, hitting 107.83 yen before rebounding slightly to 108.03.
Elsewhere, the euro also hit a seven-week high against the dollar on the news, reaching $1.1302 before retracing to $1.1266.