| 24.9°C Dublin

US dollar slides as data shows weakening job creation in America


Traders work on the floor of the New York Stock Exchange (NYSE)

Traders work on the floor of the New York Stock Exchange (NYSE)

Traders work on the floor of the New York Stock Exchange (NYSE)

The US dollar fell to seven-month lows on Friday after data showed the US economy created fewer jobs than expected in May, but equity investors shrugged off the news, lifting leading American, British and German stock indices to fresh records.

US job growth slowed last month and employment gains in the prior two months were not as strong as previously reported, suggesting the labour market was losing momentum despite the unemployment rate falling to a 16-year low of 4.3pc. The lacklustre job growth data lifted gold prices to a near six-week peak as the report lowered expectations for the Federal Reserve to raise interest rates later this year after a hike that most analysts still anticipate later in June.

US non-farm payrolls increased less than expected at 138,000 in May as the government, manufacturing and retail sectors lost jobs.

Still, investors continue to give both the economy and President Donald Trump's administration the benefit of the doubt, said Michael Arone, chief investment strategist at State Street Global Advisors in Boston.

Financial stocks in Britain lifted the FTSE 100 index of top UK blue chips to all-time peaks while Germany's DAX index also set new highs. Both later trimmed gains closed the day higher.

In Dublin, the Iseq closed down marginally but above the rarely reached 7,000 mark on Friday, ending the session at 7044.

On Wall Street, the three major US indices set intraday highs. The Dow Jones Industrial Average rose 76.47 points, or 0.36 percent, to 21,220.65. The S&P 500 gained 8.98 points, or 0.37pc, to 2,439.04 and the Nasdaq Composite added 52.95 points, or 0.85pc, to 6,299.78.

The US dollar fell to seven-month troughs against euro and Swiss franc. Analysts said the less rosy jobs data was unlikely to derail the Fed from raising interest rates this month.

Business Newsletter

Read the leading stories from the world of business.

This field is required

Most Watched