Dollar Index Rises on Strong Jobs Data, Reverses Gains Ahead of Weekend

The US dollar index saw a sharp short-term rise after the release of strong August nonfarm payrolls data, which exceeded expectations by a wide margin. The data showed an increase of 162,000 jobs in August, the highest level since March and significantly exceeding the market consensus of 56,000.

However, most of these gains were reversed ahead of the long weekend, with the index ultimately closing at 99.157, still recording a weekly decline of 0.50%. The euro and sterling posted mixed movements this week, lacking clear directional momentum.

The Australian dollar performed relatively strongly, rising 0.70% for the week, while the Swiss franc and Japanese yen became the focal points for safe-haven capital flows. The USD/JPY pair plummeted 2.35% on a weekly basis, with the price breaking below the 200-day moving average.