By Gertrude Chavez-Dreyfuss
NEW YORK, March 6 (Reuters) - The dollar held gains against major currencies on Friday, after data showed an unexpected decline in new jobs created in the world's largest economy last month, suggesting that the Federal Reserve could cut interest rates sooner than expected.
The U.S. economy lost 92,000 jobs last month after a downwardly revised 126,000 increase in January, data showed, while the unemployment rate increased to 4.4%. Economists polled by Reuters had forecast
payrolls advancing by 59,000 jobs after increasing by a previously reported 130,000 in January.
"The large downside miss in non-farm payrolls will give the doves at the Fed something to talk about," said David Rees, head of global economics at Schroders in London.
"But at least part of the downside surprise was due to strike action in the healthcare sector that ought to reverse. Beyond that, while the employment report was soft, we doubt it will be long before continued robust growth in the U.S. economy will translate into more sustained demand for labor."
In early morning trading, the dollar edged higher against the yen, up 0.2% at 157.85 yen , compared with 157.905 just before the data. The dollar index earlier trimmed its rise, but was up 0.3% at 99.307 .
The euro was down 0.4% at $1.1558. It earlier shaved some of its losses following the jobs report.
Post-payrolls, U.S. rate futures expect the Fed to resume rate cuts in September, instead of October, although the market still sees about 40 basis points of easing in 2026, less than two cuts of 25 bps each.
(Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Rashika Singh in Bengalaru; Editing by Toby Chopra and Sharon Singleton)
