The U.S. dollar briefly fell to the lower 146 yen range in New York on Friday, a level not seen since early February, after the country's employment data for July suggested a weaker-than-expected labor market.

The Labor Department said the number of nonfarm jobs increased by only 114,000 while the unemployment rate rose to 4.3 percent last month, prompting investors to sell the U.S. currency for its Japanese counterpart due to concern over the economic outlook.

The market had expected the U.S. economy to add some 175,000 jobs. Meanwhile, the jobless rate, up 0.2 percentage point from June, reached its highest level since October 2021.

Following the release of the jobs report, the dollar faced selling for the yen and plunged from the 149 yen line. It then hovered below the 147 yen line throughout most of the day, briefly hitting 146.42 yen.

At 5 p.m. in New York, the dollar was quoted at 146.43-53 yen, compared with 149.20-23 yen late Friday in Tokyo.

Analysts said the latest jobs data made some investors sell the dollar for the yen amid growing prospects that the wide interest rate gap between the United States and Japan could be narrowed in the near future.

Federal Reserve Chair Jerome Powell signaled on Wednesday that the U.S. central bank may cut borrowing costs from the current 23-year high in September.

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