Dismal US jobs report drags on dollar

NEW YORK — The dollar is falling against several key currencies as a U.S. jobs report triggered fears that the economy could slide back into recession.

The Labor Department says U.S. employers added no net workers in August, while the unemployment rate remained 9.1 percent.

Economist Paul Ashworth of research firm Capital Economics says even if the U.S. economy doesn’t start shrinking, growth will be very modest.

Kathy Lien of GFT brokerage says the likelihood of more bond-buying from the Federal Reserve to support the economy has increased. That could weigh on the dollar.

The dollar slipped to 76.62 Japanese yen from 76.78 yen, and tumbled to 0.7763 Swiss franc from 0.7942. The British pound is climbing against the dollar.

The dollar remains higher versus the euro as worries persist about the European debt crisis.