Dollar Surges on Strong US Jobs Report, Yen Gains Momentum

The US dollar experienced a surge on Friday after a strong jobs report showed that employers added 162,000 jobs in August, exceeding economists' expectations of 56,000 additions. This boosted bets on a September Federal Reserve interest rate hike.

However, the gains were partially offset as traders awaited next week's inflation data. The dollar index rose by 0.13 percent to 99.10, with the euro declining by 0.07 percent to USD1.1616 against the greenback.

The yen has surged this week due to increased speculation on more or faster Bank of Japan interest rate hikes. Japan's top currency diplomat, Atsushi Mimura, remained vigilant and warned that Tokyo is ready to intervene in the market to combat excessive yen declines.