The U.S. dollar weakened on Friday and headed toward its first two-week losing streak since late May after a disappointing July jobs report reduced expectations for another Federal Reserve interest rate hike. The U.S. Dollar Index, which measures the greenback against six major currencies, fell 0.4% to 99.54 and was also down about 0.4% for the week. Much of the headline payroll decline came from local government education, which shed nearly 50,000 jobs. However, weaker job creation could encourage policymakers to delay additional rate hikes, particularly at the Fed's September meeting. Elsewhere, the South Korean won recorded a sixth straight weekly decline, its longest losing streak since January 2023.