The U.S. dollar weakened against most major currencies on Friday, hitting nearly two-week lows against the euro, as weaker-than-expected jobs data raised concerns that the pace of recovery in the American labor market has slowed.
The Federal Reserve will not allow inflation to get out of control and is aware of the danger that a weaker dollar could feed into higher prices, one of its top policy-makers said.
The weak dollar's leading role in oil's ascent to record highs is partly due to a tide of financial flows into commodity investments but also reflects a shift in the greenback's relationship with crude.