NEW YORK, June 2 (Xinhua) — The U.S. dollar strengthened on Friday as U.S. nonfarm payrolls rose more than expected.
The dollar index, which measures the greenback against six major peers, rose 0.43 percent to 104.0065 in late trade.
Data released by the U.S. Labor Department showed that public and private sector payrolls rose 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 rate hike from the Federal Reserve in June also rose after the jobs report. Traders briefly priced in about a 38 percent chance of another 25-basis hike before the probability dropped back to about 26 percent, according to CME Group data.
Markets reacted positively after the jobs report, with the Dow Jones Industrial Average up more than 400 points in early trade.
Meanwhile, the US dollar experienced two reversals, first rising and then retracting all gains after the data was released. It then rallied from its low point and went all the way back.
The U.S. dollar index is expected to see a short-term dip in June, and investors could use such a dip to position themselves for another rally, according to a note from strategists with Bank of America Global Research on Friday.
In late New York trading, the euro fell to $1.0713 from $1.0761 in the previous session, and the British pound was down to $1.2453 from $1.2526 in the previous session.
The US dollar bought 139.9190 Japanese yen, higher than 138.8330 Japanese yen from the previous session. The US dollar was up to 0.9085 Swiss francs from 0.9060 Swiss francs and it eased to 1.3430 Canadian dollars from 1.3447 Canadian dollars. The US dollar fell to SEK 10.8007 from SEK 10.8163.
Source: sn.dk