Tue, 26 Sep 2023

U.S. dollar rises on strong job growth

03 Jun 2023, 07:30 GMT+10

NEW YORK, June 2 (Xinhua) -- The U.S. dollar strengthened Friday as the U.S. non-farm payrolls surged more than expected.

The dollar index, which measures the greenback against six major peers, rose 0.43 percent to 104.0065 in late trading.

Data released by the U.S. Department of Labor showed that the payrolls in the public and private sector increased by 339,000 in May, better than the market estimate of 190,000 and marking the 29th straight month of positive job growth.

Odds for a Federal Reserve interest rate hike in June also rose after the jobs report. Traders briefly priced in about a 38 percent chance of another hike of 25 basis points before the probability fell back to about 26 percent, according to CME Group data.

Markets reacted positively after the employment report, with the Dow Jones Industrial Average up more than 400 points in early trading.

Meanwhile, the U.S. dollar experienced two reversals, initially rising and then retracting all the gains after the release of the data. It subsequently rallied from its low point, gaining all the way back.

The U.S. dollar index is expected to see a dip in the short term in June and investors could use such a dip to position for another rally, according to a note by strategists with Bank of America Global Research on Friday.

In late New York trading, the euro fell to 1.0713 dollars from 1.0761 dollars in the previous session, and the British pound was down to 1.2453 dollars from 1.2526 U.S. dollars in the previous session.

The U.S. dollar bought 139.9190 Japanese yen, higher than 138.8330 Japanese yen of the previous session. The U.S. dollar was up to 0.9085 Swiss francs from 0.9060 Swiss francs, and it decreased to 1.3430 Canadian dollars from 1.3447 Canadian dollars. The U.S. dollar fell to 10.8007 Swedish Krona from 10.8163 Swedish Krona.

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