The
dollar rose as a U.S. labor report supported expectations that the
Federal Reserve may raise interest rates when it meets this month.
The U.S. currency erased earlier losses as a government release showed American employers added fewer-than-forecast jobs last month while the previous month’s gain was revised up and average hourly earnings rose more than projected. The jobless rate fell to 5.1 percent, the lowest level since April 2008.
"The outlook for a stronger dollar remains very much intact," said Omer Esiner, chief market analyst at currency brokerage Commonwealth Foreign Exchange Inc. in Washington. "It lays the groundwork for continued dollar buying over the next few weeks."
The Bloomberg Dollar Spot Index, which tracks the greenback versus 10 major peers, added 0.1 percent to 1,213.35 as of 8:52 a.m. in New York. It declined as much as 0.3 percent earlier. The U.S. currency gained 0.1 percent to $1.111 per euro and declined 0.7 percent to 119.26 yen.
Employers added 173,000 workers in August. The gain in payrolls, while less than forecast, followed advances in July and June that were stronger than previously reported, the Labor Department said Friday.
Average hourly earnings climbed more than forecast and workers put in a longer workweek, the report also showed.
Persistent hiring indicates employers were upbeat about America’s demand prospects leading up to mounting concerns of further deterioration in emerging economies. Fed policy makers meeting in less than two weeks will weigh resilient U.S. employment conditions against the recent turmoil in world financial markets as they debate the timing of any interest-rate increase.
The U.S. currency erased earlier losses as a government release showed American employers added fewer-than-forecast jobs last month while the previous month’s gain was revised up and average hourly earnings rose more than projected. The jobless rate fell to 5.1 percent, the lowest level since April 2008.
"The outlook for a stronger dollar remains very much intact," said Omer Esiner, chief market analyst at currency brokerage Commonwealth Foreign Exchange Inc. in Washington. "It lays the groundwork for continued dollar buying over the next few weeks."
The Bloomberg Dollar Spot Index, which tracks the greenback versus 10 major peers, added 0.1 percent to 1,213.35 as of 8:52 a.m. in New York. It declined as much as 0.3 percent earlier. The U.S. currency gained 0.1 percent to $1.111 per euro and declined 0.7 percent to 119.26 yen.
Employers added 173,000 workers in August. The gain in payrolls, while less than forecast, followed advances in July and June that were stronger than previously reported, the Labor Department said Friday.
Average hourly earnings climbed more than forecast and workers put in a longer workweek, the report also showed.
Persistent hiring indicates employers were upbeat about America’s demand prospects leading up to mounting concerns of further deterioration in emerging economies. Fed policy makers meeting in less than two weeks will weigh resilient U.S. employment conditions against the recent turmoil in world financial markets as they debate the timing of any interest-rate increase.
