SINGAPORE - The dollar slipped in Asian trade Monday after a weaker-than-expected US jobs report dashed expectations for a quick recovery from recession in the world's biggest economy, analysts said.
Data from the US Labor Department released Friday showed a loss of 85,000 jobs in December, dampening hopes for a return to positive job growth that could lead to a hike in US interest rates and support the greenback.
The Labor Department report on nonfarm payrolls was far worse than the consensus expectation for no change in overall employment levels.
The dollar stood at 92.25 yen in early afternoon trade, down from 92.72 yen in New York trading late Friday.
The euro also climbed to 1.4524 dollars from 1.4404 and fetched 133.98 yen from 133.55.
Financial markets in Japan were closed Monday for a public holiday.
Singapore's DBS Bank described the US jobs report as "disappointing" and said it "has the potential to set the tone for the US dollar to give back its gains."
It added that a "difficult US jobs recovery should keep the hawks at bay and keep the US dollar attractive as a funding currency."
Patrick Bennett, an analyst with French bank Societe Generale, said the US report "delivered a dose of reality" to the market.
"In the outrun, the US dollar is softer and risk appetite is back in vogue," he said.
Although the dollar has in recent months gained on risk aversion in times of financial market turmoil, traders were focusing on the implications of the jobs report for interest rates, with the US Federal Reserve's main rate still near zero.
The unemployment rate held at 10%, but also reflected a large number of people dropping out of the workforce.
US President Barack Obama said the jobs figures "are a reminder that the road to recovery is never straight and that we have to continue to work every single day to get our economy moving again."
