US dollar rallies after strong jobs report

New York: The US dollar index increased against most other major currencies as investors meditated on the country’s better-than-expected jobs report.

In late New York trading on Friday, the euro was down to $1.1663 from $1.1691 in the previous session, and the British pound increased to $1.3345 from $1.3290 in the previous session, Xinhua news agency reported.

The Australian dollar rose to $0.7570 from $0.7566.

The US dollar bought 109.53 Japanese yen, higher than 108.68 Japanese yen of the previous session. The US dollar was up to 0.9887 Swiss franc from 0.9849 Swiss franc, and it increased to 1.2969 Canadian dollars from 1.2958 Canadian dollars.

US total nonfarm payroll employment increased by 223,000 in May, much higher than economists’ estimate of 188,000, and the unemployment rate edged down to 3.8 per cent, the Labor Department said on Friday.

In May, average hourly earnings for all employees on private nonfarm payrolls rose by 8 cents to $26.92. Over the year, average hourly earnings have increased by 71 cents, or 2.7 per cent, according to the department.

“At 3.8 per cent, the unemployment rate is now at its 2000 cycle low. If it falls any more, we’ll have to go back 50-60 years to find a comparable level of employment health,” said Chris Low, chief economist at FTN Financial, in a note.

Economic activity in the manufacturing sector expanded in May, and the overall economy grew for the 109th consecutive month, according to the latest report released by the Institute for Supply Management (ISM).

The manufacturing index, also known as the purchasing managers’ index (PMI), registered 58.7 per cent, an increase of 1.4 percentage points from the April reading of 57.3 per cent.

The dollar index, which measures the greenback against six major peers, rose 0.24 per cent at 94.203 in late trading.

IANS