The dollar tumbled against the euro and the yen on Friday after mixed signals about the US labour market quashed expectations the Federal Reserve will start reducing its bond purchases as early as next month. US employers slowed their pace of hiring in July, with job growth of 162,000, the Labour Department said on Friday. That was below the median forecast in a Reuters poll of 184,000. The jobless rate fell to 7.4 percent.
The euro rose 0.6 percent to $1.3283, having hit a session peak of $1.3294, according to Reuters data. The dollar lost 0.7 percent to 98.84 yen, having fallen as low as 98.65 yen. On the week, the dollar was on track for a gain of about 0.6 percent against the yen, while the euro was little changed against the dollar. The dollar index, which measures the greenback versus a basket of currencies, fell 0.5 percent to 81.895.