Dollar Weakens to One-Month Low as Job Growth Slows

The U.S. dollar weakened today, hitting its lowest point in more than a month after government data showed job growth slowed significantly last month.

The dollar index, which measures the strength of the U.S. currency against six major foreign currencies, fell 0.7 percent. The weaker labor market report has raised expectations that the Federal Reserve will move to cut interest rates at its upcoming meeting later this month.

For investors and economists, the slowdown in hiring signals that the economy may be cooling faster than anticipated, despite resilience earlier in the year. A softer jobs market often leads the Fed to adjust monetary policy in order to stimulate growth, which in turn pressures the dollar lower.

Market analysts will be closely watching upcoming economic data and statements from the Fed for further clues on the timing and scale of potential rate cuts.

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