U.S. Dollar Finished July Lower on Weak U.S. Labor Cost Data

The dollar fell against a basket of currencies on Friday, ending a decent month on a sour note as a record-low rise in U.S. employment costs in the second quarter dialed back bets the Federal Reserve would raise interest rates later this year.

The euro rebounded strongly against the greenback following Thursday’s losses in the wake of encouraging inflation data in the euro zone.

A nearly 3 percent drop in Brent crude oil prices hurt the Norwegian crown, Australian dollar and other commodity-linked currencies, but they turned higher as the greenback stumbled on the disappointing 0.2 percent gain in labor costs in the second quarter.