AFP, New York :
The dollar initially sank Friday after an unexpectedly dismal US jobs report suggested the Federal Reserve may wait to raise interest rates until next year, but clawed back losses.
The Labor Department’s September report showed stalling job growth in the past two months, stagnating wages, and the participation rate falling to a 38-year low, dealing a blow to market hopes for the central bank’s Federal Open Market Committee to lift rates in October.
“Nearly all the indicators that Chair (Janet) Yellen and other FOMC participants have recently cited as important in assessing labor market conditions showed some degree of deterioration,” said Bob Eisenbeis, chief monetary economist at Cumberland Advisors.
“Markets are now likely to downgrade any likelihood of a policy move in 2015.”
The dollar initially sank Friday after an unexpectedly dismal US jobs report suggested the Federal Reserve may wait to raise interest rates until next year, but clawed back losses.
The Labor Department’s September report showed stalling job growth in the past two months, stagnating wages, and the participation rate falling to a 38-year low, dealing a blow to market hopes for the central bank’s Federal Open Market Committee to lift rates in October.
“Nearly all the indicators that Chair (Janet) Yellen and other FOMC participants have recently cited as important in assessing labor market conditions showed some degree of deterioration,” said Bob Eisenbeis, chief monetary economist at Cumberland Advisors.
“Markets are now likely to downgrade any likelihood of a policy move in 2015.”
