NEW YORK — The dollar rose against major currencies on Friday after data showed better-than-expected US jobs growth in May despite a slowdown from the previous month, suggesting the Federal Reserve might wait longer to cut interest rates.
Labor Department data showed that employers added 139,000 jobs in May, fewer than the 147,000 jobs added in April, but exceeding the 130,000 gain forecast in a Reuters poll of economists.
The dollar was up 0.95 percent to 144.87 against the Japanese yen and added 0.26 percent to 0.822 against the Swiss franc. The greenback extended gains against both safe-haven currencies following the data.
The US currency was headed for a second straight weekly gain against both the yen and franc, but it was still down about 8 percent year-to-date and about 9 percent year-to-date, respectively, against both currencies.
The dollar has been weighed down by uncertainty from President Donald Trump’s tariff policies and the prospects of negotiations with trading partners including China, the deficit spending and tax bill being considered in the US Senate after it passed the House of Representatives, and the trajectory of recent economic data, said Eugene Epstein, head of structuring for North America at Moneycorp in New Jersey.
But the market is starting to reverse some of its short positioning against the dollar in the wake of stronger-than-expected economic data, including the jobs data, Epstein said.
“Every bank is forecasting a weaker dollar, which I think is probably the right call long-term. But now you have this stretched positioning and suddenly reversing everything since you have stronger jobs numbers and stronger hourly earnings. The numbers are stronger overall and now good news is bad news because the 10-year yields went up so the rate cuts are not going to come,” Epstein said.
