Dollar drops on Fed stimulus concerns

The US dollar fell against major currencies and is being continuously pressured by the sluggish US non-farm sector.

This is being attributed to speculations that the Federal Reserve might keep its monetary stimulus policy after job data was released Friday, reports Xinhua.

US employers added 169,000 jobs in August, according to the job data released by the Labour Department, which is fewer than market expectations of an increase of 180,000 jobs.

The unemployment rate dropped to 7.3 percent, the lowest level since December 2008. Consequently, the labour force participation rate fell to 63.2 percent, the lowest since August 1978.

The market focus has been on the Federal Reserve's upcoming policy meeting scheduled for Sep 17-18. Meanwhile, the Australian dollar rallied as China, its largest trading partner, posted better-than-expected trading report.

China's exports rose 7.2 percent year-on-year to $190.61 billion in August, up 2.1 percentage points from the growth in July while its imports expanded 7 percent, according to Chinese customs figures released Sunday.

Also, in New York trading, the euro rose to $1.3259 from $1.3181 of the previous session, and the British pound increased to $1.5701 from $1.5634. The Australian dollar climbed to $0.9320 from $0.9190.