US Dollar Surges as Strong Jobs Data Hints at Rate Hike Bets
The US dollar surged on Friday after the August jobs report exceeded expectations, boosting bets for a Federal Reserve rate hike later this month.
The jobs data revealed that US nonfarm payrolls increased by 162k in August, nearly triple the predicted 55k, while the unemployment rate remained steady at 4.1%.
With interest rates under scrutiny due to a complex environment for the Fed, traders added to their bets of a rate hike on September 16, as a resilient labor market and high inflation hint at an overheating economy.
The dollar's gain was led by the, which rose 0.3% to 99.18, although it remained down 0.5% for the week.
The yen eased after its massive spike in the previous session, with a 2.5% weekly gain set to be its strongest since late July.