* Jobs growth in August below expectations
* Dollar index falls to one-week low
(Adds market action, changes dateline, previous LONDON)
By Karen Brettell
NEW YORK, Sept 2 The U.S. dollar dropped on
Friday after jobs growth in August came in below expectations,
reducing the likelihood that the Federal Reserve will raise
interest rates when it meets later this month.
Nonfarm payrolls rose by 151,000 jobs last month after an
upwardly revised 275,000 increase in July, with job losses in
manufacturing and construction sectors, the Labor Department
said on Friday. The unemployment rate was unchanged at 4.9
percent as more people entered the labor market.
Hawkish statements from Fed Chair Janet Yellen and Vice
Chair Stanley Fischer last week had increased expectations that
the U.S. central bank is closer to raising rates, though most
investors see one increase in December as most likely if the Fed
hikes this year.
"There were no positive standouts here, the key underlying
data were all pretty soft as well," said Tom Porcelli, chief
U.S. economist at RBC Capital Markets in New York. "This should
put to rest the conversation on September."
The dollar index, which measures the greenback
against a basket of six major currencies, fell 0.24 percent to
95.432, the lowest level since last Friday.
(Editing by Nick Zieminski)