FOREX-U.S. dollar posts broad gains after unexpectedly strong jobs data

Reuters

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 (Updates to late New York trading)
    By Caroline Valetkevitch
    NEW YORK, Aug 5 (Reuters) - The dollar rallied across the board on Friday, notching its biggest daily
percentage gain since mid-June against the yen, after a stronger-than-expected U.S. payrolls report
suggested the Federal Reserve may need to continue aggressively raising interest rates in the near term.
    The U.S. dollar index  =USD , which measures the greenback against a basket of currencies, sharply
extended gains following the report, which showed nonfarm payrolls increased by 528,000 jobs last month, the
largest gain since February. That was well above economists' expectations.  urn:newsml:reuters.com:*:nL1N2ZG2G3
    The dollar index, which remains below its mid-July high, was last up 0.8% at 106.57. It was up about
0.2% just before the release of the U.S. Labor Department's employment report. The index was up about 0.6%
for the week.
    "This is a much stronger report than was expected. ... What it means is the Fed cannot pivot at this
point. The Federal Reserve has to continue to hike rates. The folks who are saying let's take it more slowly
are being shoved aside here with this report," said Axel Merk, president and chief investment officer at
Merk Investment in Palo Alto, California.
    "The dollar is stronger against almost everything. The U.S. is performing when the general mood is that
the world is slowing down."
    Against the yen, the dollar was last up 1.5% at 134.99 yen. For the week, the dollar was up 1.3% against
the yen.
    The Fed last week raised its policy rate by three-quarters of a percentage point. The U.S. central bank
has raised that rate by 225 basis points since March, but investors had been assessing recently whether the
Fed might be less aggressive in hiking rates in the future. The dollar index is up more than 11% for the
year so far amid the outlook for higher rates.
    Sterling  GBP=D3  was down 0.8% against the dollar at $1.2066, a day after the Bank of England (BoE)
raised rates by the most in 27 years to fight surging inflation and warned that a long recession would begin
in the fourth quarter of this year.  urn:newsml:reuters.com:*:nL8N2ZG4J4
    The euro  EUR=EBS  was down 0.7% against the greenback at $1.0178.
    In cryptocurrencies, bitcoin  BTC=BTSP  was last up 1.2% at $22,886.45.
    ========================================================
    Currency bid prices at 3:30PM (1930 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct       High Bid    Low Bid
                                              Previous                   Change                   
                                              Session                                             
 Dollar index      =USD       106.5700       105.7000    +0.84%         11.401%       +106.9300   +105.6900
 Euro/Dollar       EUR=EBS    $1.0178        $1.0247     -0.66%         -10.46%       +$1.0252    +$1.0142
 Dollar/Yen        JPY=EBS    134.9850       132.9300    +1.52%         +17.23%       +135.4900   +132.5300
 Euro/Yen          EURJPY=    137.40         136.18      +0.90%         +5.43%        +137.7500   +135.8100
 Dollar/Swiss      CHF=EBS    0.9618         0.9552      +0.66%         +5.41%        +0.9649     +0.9539
 Sterling/Dollar   GBP=D3     $1.2066        $1.2158     -0.75%         -10.77%       +$1.2168    +$1.2004
 Dollar/Canadian   CAD=D3     1.2930         1.2863      +0.53%         +2.27%        +1.2984     +1.2865
 Aussie/Dollar     AUD=D3     $0.6912        $0.6968     -0.78%         -4.89%        +$0.6975    +$0.6870
 Euro/Swiss        EURCHF=    0.9789         0.9783      +0.06%         -5.59%        +0.9801     +0.9760
 Euro/Sterling     EURGBP=    0.8434         0.8420      +0.17%         +0.40%        +0.8453     +0.8411
 NZ                NZD=D3     $0.6241        $0.6298     -0.89%         -8.80%        +$0.6309    +$0.6215
 Dollar/Dollar                                                                                    
 Dollar/Norway     NOK=D3     9.7970         9.7275      +0.70%         +11.20%       +9.8705     +9.7255
 Euro/Norway       EURNOK=    9.9770         9.9648      +0.12%         -0.36%        +10.0212    +9.9607
 Dollar/Sweden     SEK=       10.1903        10.1117     +0.08%         +13.00%       +10.2356    +10.1051
 Euro/Sweden       EURSEK=    10.3725        10.3641     +0.08%         +1.35%        +10.3938    +10.3504
 

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World FX rates    https://tmsnrt.rs/2RBWI5E
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 (Reporting by Caroline Valetkevitch; additional reporting by Samuel Indyk in London and Rae Wee in
Singapore; editing by Ros Russell, Angus MacSwan, Susan Fenton and Paul Simao)
 ((caroline.valetkevitch@thomsonreuters.com))

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