US jobs report sends US dollar higher

[NEW YORK] The euro and the British pound fell against the US dollar on Friday as stronger-than-expected employment numbers in the United States rallied markets and raised expectations of a US interest rate hike later this year.

Towards 1800 GMT, the euro was down against the US dollar at US$1.1096 versus US$1.1131 at 2100 GMT the day before.

The pound also fell to US$1.3086 from US$1.3114 in over the same period.

The US Labor Department on Friday said American private and public sector employers had added more than a quarter of a million jobs, beating analyst expectations and helping confirm a robust, upward trend in labour markets.

Employment numbers are one factor examined by monetary policy makers in deciding whether to increase key interest rates, which can help drive demand for US currency.

"Overall the dollar remains stronger. It will reman supported on the near term following stronger than expected US employment data," said Eric Viloria of Wells Fargo.

"The details of the reports overall were solid, including the number of payrolls added, the average hourly earnings," he added.

"Unemployment rate was steady but there is an increase in participation, so the report was seen as supportive for the US dollar and an eventual resumption of Fed rates interest hikes later this year. We think December is likely."

AFP