Dollar Strengthens Amid Surprising U.S. Job Growth
The U.S. dollar rose against major currencies following better-than-expected job growth in May despite an overall slowdown. The Labor Department reported 139,000 new jobs. Strong labor data suggests the Federal Reserve may delay interest rate cuts, influencing currency markets despite broader economic uncertainties.
In a surprise move, the U.S. dollar rose against key global currencies after May's job growth exceeded expectations, despite being slower than the previous month. Official data released by the Labor Department indicated that employers added 139,000 jobs in May, surpassing the forecast of 130,000, though lower than April's addition of 147,000 jobs.
Reacting to the labor data, the dollar climbed 0.95% against the Japanese yen to 144.87 and advanced 0.26% to 0.822 against the Swiss franc. The greenback maintained momentum, marking its second consecutive weekly gain against these safe-haven currencies despite overall annual declines. Analysts pointed out that strong economic figures might delay expected Federal Reserve rate cuts.
The Labor Department's robust report comes amidst existing market uncertainties fueled by President Donald Trump's trade policies and fiscal measures pending in the U.S. Senate. Still, recent data, including job figures, have shifted market positioning regarding the dollar, leading to a re-evaluation of long-term forecasts amid evolving economic landscapes.
(With inputs from agencies.)
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