The dollar dipped against a basket of currencies on Friday, though it recouped much of its losses tied to news of slower-than-expected domestic job growth in April which supported ideas the Federal Reserve would not raise interest rates in June. The dollar index, which measures the greenback against the euro, yen and four other currencies, was last down 0.1 percent at 93.696. It had fallen as much as 0.6 percent earlier in the day, after the government said US employers hired 160,000 workers in April, the fewest in seven months.
"It doesn't bode well for global growth," said Charles St-Arnaud, currency strategist at Nomura Securities International in New York. "The Fed mostly likely won't be able to hike rates in June." US interest rate futures suggested traders saw a 7 percent chance of the Fed raising rates at its June 14-15 meeting, down from 14 percent on Thursday, Reuters data showed. The initial selling of dollar linked to the latest payrolls report faded as some traders had scaled back their dollar holdings following a disappointing ADP private employment report on Wednesday, analysts said.