US jobs growth of 172K in May surpasses forecasts, lifting rate-hike bets and the dollar index.
The US Dollar Index climbed to 100.10 on Friday, recovering from a session low of 99.16. The move followed a May Nonfarm Payrolls report that showed 172K jobs added, exceeding the 85K consensus estimate.
Analysts had anticipated a softer print after April’s downwardly revised figures. The surprise strength in hiring reinforced expectations for a potential Federal Reserve rate increase later this year.
Markets reacted by pricing in higher odds of a hike, pushing the dollar higher against major peers.