Employment, services activity data send dollar lower

The US dollar weakened on Friday, dropping 0.5 percent to $1.3767 versus the euro, while it fell 0.2 percent to $2.0400 in relation to sterling.

Elsewhere, the greenback added 0.1 percent against the yen over the week even though the Japanese currency added 0.2 percent to ¥118.42 on Friday but it fell 1.2 percent over the week to the Swiss franc, to trade at SFr1.1938.

The dollar’s declines came on new jobs figures and slowing activity in the services sector, as well as on increasing sentiment that the US Federal Reserve will not raise interest rates again this year and could even reduce them if enough data turned negative.

The euro and sterling each gained 1 percent on the yen, to ¥163.01 and ¥241.57 respectively, aided by analyst expectations that both the European Central Bank and the Bank of England are likely to raise interest rates in September.

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