The US dollar weakened at the end of the trading week as investors adjusted their expectations for Federal Reserve policy following the July jobs report. The greenback has slumped in recent sessions and is on track for a weekly loss.

Last month, the US economy lost 23,000 jobs, according to the Bureau of Labor Statistics. Economists had forecast a gain of about 80,000 jobs.

The unemployment rate dipped to 4.1%, from 4.2%, coming in below the consensus forecast.

A weaker-than-expected jobs report reignited fears that the labor market is beginning to slow down after four months of solid employment gains.

As a result, traders have pared their bets that the US central bank will raise interest rates at next month’s policy meeting. Investors now expect a 60% chance the Fed will leave the benchmark federal funds rate in the current target range of 3.5% and 3.75%.

Markets penciled in a more dovish position at the Eccles Building, sending US Treasury yields lower and impacting the buck.

“This morning’s report is a game changer in the sense that all of the recent focus has been on inflation and this report highlights the risks that are embedded in the labor market as well,” said Chris Zaccarelli, chief investment officer for Northlight Asset Management, according to CNBC. “Before today, many were expecting that the Fed had no choice but to raise rates in order to fight stubbornly high inflation, because the job market was so strong, but this report shows that isn’t the case.”

The benchmark ten-year Treasury yield fell more than two basis points to below 4.65%. The 30-year was little changed at 5.2%, while the two-year hovered around 4.2%.

The US Dollar Index, a measure of the buck against a weighted basket of currencies, fell 0.33% to 99.60, from an opening of 99.94, at 15:45 GMT on Friday. The index is up just 1.3% this year after surging as much as 3%.

The USD/CAD currency pair declined 0.56% to 1.3937, from an opening of 1.4016. The USD/JPY dropped 0.6% to 157.51 from an opening of 158.46.