Asia currencies got a bump up Monday after the dollar took a hit from a weaker-than-expected U.S. jobs report, but it isn't clear if the move is sustainable.
U.S. nonfarm payrolls rose by only 38,000 in May, a far cry from the 162,000 expected, throwing shade on broadly telegraphed expectations that the U.S. Federal Reserve would hike interest rates in June or July.
Analysts quickly reset their rate-hike expectations.
"It does look like in the second quarter we've seen a sequential slowdown in U.S. growth. That closes June, that probably closes July," Robert Rennie, global head of foreign-exchange strategy at Westpac Bank, told CNBC's "Squawk Box."
The data put a dead hand on the dollar's recent rally: The dollar index, which measures the greenback against a basket of currencies, dropped as low as 93.867 Friday after the data from as high as 95.638 before the release. The dollar index was at 94.244 at 12:14 p.m. SIN/HK.
Asian currencies climbed against the dollar, with the greenback fetching as few as 106.35 yen early Monday, down from levels over 109 yen on Friday. Among other currencies, the dollar fell to as low as 1.3559 Singapore dollars from as much as S$1.3773 before the data Friday. The Australian dollar rose, fetching as much as $0.7391, compared with as little as $0.7214 before the release.