The U.S. dollar retreated against major currencies on Friday after report showed that U.S. non-farm sector added fewer jobs than expected in July.

Total non-farm payroll employment increased by 162,000 in July and the unemployment rate edged down to 7.4 percent, the Labor Department said Friday morning.

However, July's jobless rate fell more than expected, but this may be because more people have given up to seek jobs. Analysts had forecast unemployment rate to fall to 7.5 percent in July from 7.6 percent in June.

"The world's biggest economy is still growing, but it's not growing as much as we had expected or hoped," said Marcus Bullus, trading director at MB Capital.

As a result, the Dollar was immediately down against the Euro, Pound and Yen and the 10-year Treasury yield also fell, Bullus added.

The Federal Reserve announced on Wednesday it would continue its current monetary stimulus to bolster the slow economic growth and job creation. The announcement was widely within market expectations.

The U.S. real GDP increased at an annual rate of 1.7 percent in the second quarter of 2013, according to the "advance" estimate released Wednesday by the Commerce Department. Analysts had forecast 1.1 percent.

In late New York trading, the euro rose to 1.3285 dollars from 1.3215 dollars of the previous session and the British pound increased to 1.5285 dollars from 1.5123 dollars. The Australian dollar fell to 0.8908 dollars from 0.8937 dollars.

The dollar bought 98.90 Japanese yen, lower than 99.49 yen of the previous session. It edged down to 0.9288 Swiss francs from 0. 9365 Swiss francs and moved up to 1.0390 Canadian dollars from 1. 0344 Canadian dollars. Endi

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