New York- The dollar jumped to hit its highest level in more than a year, after data showed stronger US job growth than expected in October, but retreated a bit in late trading as risk appetite improved and stocks rallied.
Nonfarm payrolls increased by 531,000 jobs last month, above the 450,000 forecast, as the latest surge in COVID-19 infections subsided. August and September data were revised upward to show an additional 235,000 jobs created over those months.
The dollar index, which measures the greenback against a basket of six rivals, rose as high as 94.634 after the jobs report, its firmest since Sept. 25, 2020.
The safe-haven currency pulled back a bit as risk appetite improved and stocks staged a broad rally. The dollar was last down 0.096 percent at 94.234, but was still up around 0.1 percent for the week, which was marked by a bevy of central bank meetings that forced investors to reset rate hike expectations.
On Wednesday, Fed Chair Jerome Powell said he was in no rush to hike borrowing costs, as there was “still ground to cover to reach maximum employment.” The central bank did announce a $15 billion monthly tapering of its $120 billion in monthly asset purchases.
“The payrolls print is certainly in line with Powell’s statement at the Fed press conference, where he noted that job gains of this magnitude are consistent with the notion of making substantial further progress,” TD Securities strategists said in a note.
