Investing.com – The dollar rose against its rivals Thursday after data showed the U.S. economy created more jobs than expected last month, strengthening the Federal Reserve’s case to continue gradually raising rates.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.31% to 96.57.
The Labor Department said Friday nonfarm payroll employment increased by 250,000 jobs in October, beating economists’ estimates for 193,000 new jobs. While the unemployment rate was unchanged at 3.7%.
Average hourly earnings rose 0.2% month on month and 3.1% for the year through October, in line with economists’ forecasts.
The better-than-expected jobs data keeps the Fed on track for another hike in December, leading to a tightening cycle that could slightly overshoot the neutral rate over time, TD Securities said.
“The data offers a boost to the dollar, though we think markets will be cautious to push this narrative with positioning stretched and event risk related to the US mid-terms next week,” it added.