The US dollar saw its largest weekly decline since April, as employment data dented expectations of a rate hike by the Federal Reserve.

The US dollar fell on Friday and is poised to post its largest weekly decline in 12 weeks. The weak performance in the US employment report released on Thursday has dampened expectations of the Federal Reserve raising interest rates in the near future, giving the yen a chance to catch its breath. With the US dollar weakening across the board, the euro against the dollar rose to $1.1440, reaching its highest level in nearly two weeks and posting a 0.5% increase for the week. The CME FedWatch tool shows that the market currently sees a 45% probability of a rate hike at the September Federal Reserve meeting. The US bond market was closed on Friday for the Independence Day holiday. "Our forecast does not include a rate hike, so this is in line with our view that there will eventually be a turn, and the US dollar will weaken," said Karl Steiner, SEB's head of analysis. "If we see further downside in the US dollar, I would not be surprised." The US dollar index fell by about 0.2% to 100.83, after falling by 0.5% on Thursday and posting a 0.5% decline for the week, marking the largest weekly decline since early April.