The U.S. dollar fell on Wednesday against major peers, including the yen, Swiss franc, and euro, after fresh data showed signs of weakening labor demand. The softer numbers boosted market expectations for a Federal Reserve interest rate cut.
The Labor Department reported that U.S. job openings dropped more than forecast in July, falling to 7.181 million. Economists surveyed by Reuters had expected 7.378 million, according to the JOLTS data release.
Analysts said the Fed’s focus on employment means the dollar could continue to lose ground if labor conditions deteriorate further. Eugene Epstein, head of structuring for North America at Moneycorp, noted that weak payrolls, dovish comments from Fed Chair Jerome Powell at Jackson Hole, and the latest JOLTS report are all fueling expectations of policy easing.
The greenback erased early gains and slipped 0.2% to 148.04 against the yen, while dropping 0.11% to 0.803 against the Swiss franc. The euro extended its rise, climbing 0.34% to $1.1672.
The British pound also advanced, strengthening 0.38% to $1.3442 as gilt yields hit their highest levels since 1998. The euro slipped 0.24% against sterling to 0.86795.
U.S. Treasury yields moved lower following the data. The 2-year note yield, closely tied to Fed policy expectations, fell 4.6 basis points to 3.613%. The 10-year benchmark yield dropped 5.6 basis points to 4.221%.
Meanwhile, the 30-year Japanese government bond yield touched record highs, adding pressure on the yen. Political uncertainty also weighed, with LDP Secretary-General Hiroshi Moriyama announcing plans to resign.
In commodities, spot gold surged to an all-time high of $3,567.16 amid the global bond selloff. In digital assets, bitcoin rose 0.78% to $112,288.58.
The dollar index, which tracks the greenback against a basket of currencies, declined 0.36% to 98.047.
