US Dollar Experiences Significant Weekly Decline in Three Months

The US dollar is set for its largest weekly decline in approximately three months, following a weak June 2026 jobs report that tempered market expectations for a US interest rate hike. The dollar's retreat persisted in Asian trading, with the Euro nearing its two-week high at $1.1442. The British Pound stabilized at $1.3361 and is set for a 1.2% weekly gain, marking its best performance in nearly three months. The risk-sensitive Australian Dollar touched $0.6935, poised to end a four-week losing streak. The New Zealand Dollar traded at $0.5702, rising 1.2% over the week. The Dollar Index, measuring the US currency's performance against a basket of currencies (Yen and Euro), fell 0.2% to 100.77 points after a 0.5% drop yesterday. It has decreased 0.58% since the week's start, its largest weekly fall since early April 2026. This decline stems from a sharp slowdown in US job growth during June 2026, as non-farm payrolls increased by only 57,000, significantly below the 110,000 jobs forecasted. The labor force participation rate dipped to 61.5%, its lowest point in over five years. In recent trading, the Japanese Yen reached 161.01 against the dollar after climbing about one percent in the prior session, moving the currency away from its multi-decade lows amidst dollar fluctuation.