(Bloomberg) -- The dollar weakened to the lowest in over a month as swaps traders reined in bets for another Federal Reserve rate hike and pushed forward expected rate cuts.

Bloomberg’s gauge of the greenback fell as much as 0.9% Friday to a six-week low, following Treasury yields down as rate reductions were rapidly repriced for next year on a report showing slower-than-expected US jobs growth. 

“Data was mixed to slightly weaker than expected largely confirming that the Fed tightening cycle has peaked, in a blow to the dollar,” said Valentin Marinov, head of G-10 FX strategy at Credit Agricole.

It’s the third day of declines after the US central bank left its target range for the benchmark federal funds rate unchanged. Friday’s cooling jobs data is reinforcing bets that the Fed’s rate hiking cycle is done. 

The US currency has lost more than 1.4% since last Friday and is poised for the biggest weekly drop since mid-July, when the gauge reached its year-to-date low. The Bloomberg Dollar Spot Index is still up for the year but has fallen nearly 2% from its 2023 high reached in October.

The US economy has been expanding quicker than expected, while Europe and other places showed weaker economic growth. Strategists and options positioning have been suggesting that the dollar’s run is poised for a cool down.

Read more: The Dollar’s Peak Is Drawing Near as Trader Fatigue Sets In

“The US data is softer, but the rest of the world is not better, so a range-bound dollar is likely,” said Kit Juckes, chief foreign-exchange strategist at Societe Generale in London. 

--With assistance from George Lei.

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