The dollar fell more than a cent against the euro after a much weaker than forecast May US employment report that softened expectations for the future pace of monetary tightening.
The US economy generated 75,000 jobs in May compared with a downwardly revised 126,000 in April. The median forecast was 175,000, from 138,000 the previous month, according to Reuters.
The jobless rate fell unexpectedly to 4.6 per cent from 4.7 per cent in April.
The probability of a June rate increase, as measured by the Feds funds futures, fell to 46 per cent from 68 per cent just before the employment data, and 80 per cent earlier this week.
The dollar fell 0.8 per cent against the euro, more than a cent after the data, to $1.2926, 0.5 per cent against the yen to 111.87 yen and 0.8 per cent versus sterling to $1.8621.
The euro hit a four-week high of £0.6882 against sterling and 1.5654 against the Swiss franc this morning as the possibility of a 50 basis point interest rate increase by the European Central Bank grew.
Agencies