The dollar experienced a decline on Friday after the release of a weaker-than-expected US jobs report. The data tempered expectations for a near-term interest rate increase by the Federal Reserve.

The Labor Department reported that the US economy added only 280,000 jobs in May, falling short of economists’ forecasts. This raised concerns about the strength of the economic recovery and its potential impact on monetary policy.

Analysts noted that the disappointing jobs data could prompt the Federal Reserve to delay raising interest rates, which would likely put further downward pressure on the dollar. The currency’s value is closely tied to expectations regarding interest rate movements.

The dollar index, which measures the currency’s strength against a basket of major currencies, fell by 0.4% following the report’s release.

The euro gained against the dollar, while the yen also strengthened. Commodity currencies, such as the Australian dollar and the Canadian dollar, also benefited from the dollar’s weakness.

Market participants will be closely monitoring upcoming economic data releases for further clues about the Federal Reserve’s policy intentions.