Dollar weakens

NEW YORK: The US dollar weakened after data for September showed jobs gains that fell short of expectations while wages increases slowed on an annualized basis during the month, easing concerns about a large run-up in inflation.

Nonfarm payrolls increased by 134,000 jobs last month, the fewest in a year, though data for July and August was revised to show 87,000 more jobs added than previously reported.

Average hourly earnings increased eight cents, or 0.3 percent, in September after rising 0.3 percent in the prior month.

With September´s increase below the 0.5 percent gain notched during the same period last year, that lowered the annual increase in wages to 2.8 percent from 2.9 percent in August, which was the biggest rise in more than nine years.

"Wage inflation is creeping higher, but it has not accelerated as the market was fearing," said Russell Price, senior economist at Ameriprise Financial Services in Troy, Michigan. Investors have been watching for indications that wages may rise at a faster pace as companies, including Amazon, raise minimum wages. Still, the data was seen as solid and supportive of the Federal Reserve continuing to tighten monetary policy.