NEW YORK- The dollar rose in choppy trading on Friday after data showed that US job growth slowed in January but that the unemployment rate edged down to 4.0 percent, giving the US Federal Reserve cover to hold off cutting interest rates until at least June.
The US currency was also boosted by comments from President Donald Trump that he plans to announce reciprocal tariffs on many countries next week, without specifying which countries.
The dollar index which measures the US currency against the yen, sterling and other peers, was last up 0.353 percent at 108.04. It was on track for a weekly fall after investor fears about a global trade war receded.
Nonfarm payrolls increased by 143,000 jobs last month after rising by an upwardly revised 307,000 in December, the Labor Department’s Bureau of Labor Statistics said in its closely watched employment report.
Economists had expected the survey to show 170,000 jobs added.
“We don’t really have a trend in nonfarm payrolls,” said Joseph Trevisani, senior analyst at FX Street. “We don’t have a declining trend, and we don’t really have a strengthening trend. It’s pretty much par for the course, so I don’t think you’re going to get a lot of market movement out of this.”
Investor nerves about global trade wars returned on Friday after Trump pledged to impose more tariffs as part of a broad effort that he said could also help solve US budget problems.
Trump made the announcement during a meeting with visiting Japanese Prime Minister Shigeru Ishiba. He said auto tariffs remained on the table amid reports that the White House was weighing potential exemptions.
Britain’s pound was down 0.2 percent at $1.2413 after falling 0.54 percent on Thursday when the BoE lowered rates to 4.5 percent and said the UK economy would grow just 0.75 percent this year, half the previous forecast.
