Investing.com – The dollar languished at session lows against a basket of major currencies after a mixed jobs report showed the U.S. economy created fewer than expected jobs while wage growth steadied ahead of a speech by Federal Reserve chairman Jerome Powell slated for 1.30 p.m. ET.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.29% to 89.86, hovering above session lows of 89.82.
The U.S. economy created 103,000 in March, well below the 326,000 jobs created in February, according to a report released Friday by the U.S. Department of Labor. That missed economists’ forecast for 193,000.
The jobless rate remained unchanged at 4.1%, missing economists’ forecasts for a 0.1% decline to 4%. Average hourly earnings grew 0.3% for February, in-line with expectations.
Despite elevated investor expectations for a second rate hike at the Federal Reserve’s upcoming June meeting, analysts cautioned the prospect of further tightening amid a lack of price pressures.
"The probability of a June rate hike remains elevated at 79% but without a meaningful uptick in price pressures, the FOMC will find it difficult to justify a second 2018 rate increase," Stifel said.
The dollar was also weighed by increasing demand for safe-haven currencies after U.S.-China tensions grew as China warned it would retaliate with fresh measures to protect its interests after President Donald Trump threatened to impose an extra $100 billion in tariffs.
USD/JPY fell 0.28% to Y107.10.
Some analysts, however, remained positive on the greenback despite growing U.S.-China tensions on trade.
“We remain focused on the constructive technical backdrop for the dollar and war of words on the global trade front, both of which have us leaning short-term positive on the dollar,” TD Securities said
EUR/USD, meanwhile, rose 0.23% to $1.2269, while GBP/USD added 0.59% to $1.4085.
USD/CAD rose 0.11% C$1.2765.