The U.S. dollar slumped to multi-month lows against major currencies on Friday after data showed weaker-than-expected job growth, reinforcing expectations of multiple Federal Reserve rate cuts in 2024. U.S. rate futures now price in 78 basis points of easing this year, with the first rate cut likely in June. Fed Chair Jerome Powell reiterated that the central bank will be cautious in adjusting rates, waiting for more clarity on economic policies and inflation trends.
The euro surged, marking its best week in 16 years with a 4.5% gain against the dollar, driven by Germany’s bold fiscal reforms. It peaked at $1.0888 before settling at $1.0845, up 0.6%. Against the yen, the dollar hovered at 147.99 yen, after earlier hitting a five-month low of 146.94 yen.
U.S. nonfarm payrolls rose by 151,000 in February, below the 160,000 forecast, with January’s figure revised down to 125,000. Average hourly earnings growth slowed to 0.3%, easing concerns over wage inflation. The dollar index, tracking the greenback against six major currencies, fell 3.5% for the week, its worst since November 2022, dipping to 103.81.
Treasury Secretary Scott Bessent warned of an economic "detox period" as the U.S. transitions from public to private spending. Meanwhile, President Trump’s tariff policy uncertainty continues to impact markets, with his recent executive order directing a strategic bitcoin reserve.
Bitcoin dropped 2.8% to $87,030.54 amid regulatory discussions at a White House summit, while ether declined 2.6% to $2,150. The dollar’s broad weakness extended against the Canadian dollar and Mexican peso, reflecting heightened market volatility.


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