The dollar drops after the jobs report whiffs

Hospitals added 7,000 jobs over the month, and employment in ambulatory health care services continued to trend up (+13,000).Job growth in health care has averaged 22,000 per month thus far in 2017, compared with an average monthly gain of 32,000 in 2016. But judging by today's response to the job numbers, traders may be having second thoughts about whether the United States is at full employment, too. The U-3 headline unemployment rate dropped slightly from 4.4% to 4.3%, which is the lowest it has been since 2001. The current pace of job growth is almost three times the rate necessary to absorb growth in the labor force.

At the time, it was the second straight month of disappointing numbers and fears rose that the USA job market was cooling off.

Still, investors continue to give both the economy and President Donald Trump's administration the benefit of the doubt, said Michael Arone, chief investment strategist at State Street Global Advisors in Boston.

Against the yen, the dollar fell from one-week highs and last changed hands at 110.74 yen, down 0.5 percent.

Each month, the Bureau of Labor Statistics takes collects its data for the jobs report during the week of the month containing the 12th.

The dollar also slid to seven-month troughs versus the Swiss franc, trading last at 0.9664 franc, down 0.5 percent. It meets later in June and is expected to raise borrowing costs for the second time this year, confident that low wage inflation will prove to be transitory.

The euro was little changed at $1.1217 after losing 0.3 percent the previous day.

Brent crude dipped below $50 and headed for a second week of losses on worries Trump's decision to abandon a climate pact could spur US drilling and worsen a global oil glut. U.S. West Texas Intermediate crude futures fell 52 cents to $47.84 per barrel.

A report showing US weekly jobless claims rising more than expected to 248,000 hardly mattered as investors focused on the strong ADP data.

The benchmark 10-year Treasury yield was marginally higher at 2.22 percent, but was still a long way from this year's high above 2.60 percent seen in March.

Spot gold rose 0.89 percent to $1,276.50 an ounce, its highest since April 25, headed for its fourth week of gains.