NEW YORK, Feb 7 (Reuters) - The U.S. dollar dropped broadly on Friday after the January U.S. non-farm payrolls report showed weaker-than-expected employment growth, driving interest rates lower and taking away an advantage for the greenback.
The euro initially popped to a high of $1.36490 from $1.58950, on the EBS trading platform. It has since faded back to $1.35990, a gain of just 0.09 percent on the day.
“The headline number clearly surprised to the downside,” said Richard Cochinos, currency strategist at Citi in New York.
“It certainly is a positive for bonds and yields are lower and that’s a negative for the dollar,” he said.
U.S. non-farm payrolls rose by 113,000, well below the consensus estimate of economists polled by Reuters of 185,000.
Cochinos highlighted the mixed nature of the report as increasing labor force participation indicated people are more hopeful about attaining a job while the unemployment rate dropped a tenth of a percent to 6.6 percent, its lowest since October 2008.