Dollar Falls as Traders Price In Two 2025 Rate Cuts on Weak Jobs Data

The dollar tumbled on Friday, as traders ramped up expectations for how much the Federal Reserve will cut interest rates this year following a weaker-than-expected US employment report.

The Bloomberg Dollar Spot Index fell 0.9% — its worst day since April 11 — after July payrolls missed estimates and the previous two months were revised lower, pushing traders to fully price in two rate cuts by the Fed this year. The yen led gains, advancing as much 2.3% against the greenback, while the euro rose more than 1%. The soft labor report comes as President Donald Trump has been criticizing Fed Chair Jerome Powell for not lowering rates sooner.