Dollar Tumbles as Below-Forecast Payrolls Gain Trims Fed View

The dollar had the biggest weekly drop against the yen in almost three months as U.S. payrolls rose less than forecast in December, fueling concern the Federal Reserve will slow reduction in bond-buying.

Canada’s dollar weakened to a four-year low as the nation’s jobless rate unexpectedly rose, led by the largest drop in full-time work since 2011, adding to bets the central bank may consider cutting interest rates. The pound snapped a three-week rally against the euro on signs manufacturing slowed. Mexico’s peso led gains among major currencies as the slowest increase in U.S. payrolls in three years fueled demand for the Latin American country’s debt. Treasury yields plunged.