US dollar slides as data shows weakening job creation in America

Traders work on the floor of the New York Stock Exchange (NYSE)

The US dollar fell to seven-month lows on Friday after data showed the US economy created fewer jobs than expected in May, but equity investors shrugged off the news, lifting leading American, British and German stock indices to fresh records.

US job growth slowed last month and employment gains in the prior two months were not as strong as previously reported, suggesting the labour market was losing momentum despite the unemployment rate falling to a 16-year low of 4.3pc. The lacklustre job growth data lifted gold prices to a near six-week peak as the report lowered expectations for the Federal Reserve to raise interest rates later this year after a hike that most analysts still anticipate later in June.