Dollar heads for weekly drop as jobs data dims Fed hike bets

The US dollar is set for a weekly drop of 0.58%, its biggest since early April, after softer-than-expected US jobs data dimmed Federal Reserve rate hike expectations. US nonfarm payrolls rose only 57,000 in June, well below the 110,000 consensus, prompting traders to trim September Fed hike odds to 52% from 64%. The euro held near a two-week peak and the yen rebounded from multi-decade lows, while a weaker dollar is broadly constructive for emerging market currencies including the rupee and supportive of FII flows into Indian equities.