The U.S. dollar fell, hitting one-week lows against the euro on Friday after a drop in U.S. wages in February overshadowed strong jobs growth and supported views that the Federal Reserve was in no hurry to hike interest rates.
Average hourly earnings fell 3 cents in February, data from the Labor Department showed. Analysts said traders were fixated on that drop even as nonfarm payrolls increased by 242,000 jobs last month.
The dollar was set to post its first weekly decline against the euro in three weeks.
"The weak wage numbers are clearly an indication that maybe the Fed will ultimately be okay waiting a little bit longer," said Axel Merk, president and chief investment officer of Palo Alto, California-based Merk Investments.