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% to 144.87 against the Japanese yen and added 0.26% to 0.822 against the Swiss franc . The greenback extended gains against both safe-haven currencies following the data.
The U.S. currency was headed for a second straight weekly gain against both the yen and franc, but it was still down about 8% year-to-date and about 9% 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 U.S. 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. The euro added to losses against the dollar immediately after the jobs data and was down 0.43% at $1.1395. It is still up about 10% year-to-date against the dollar.
The single currency, which is headed for a weekly gain against the greenback, had hit a six-week high of $1.14950 on Thursday following comments by European Central Bank President Christine Lagarde that the central bank was nearing the end of the monetary policy easing cycle.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.53% to 99.20 on the session, but it is on track to notch a weekly loss.
Trump and Chinese leader Xi Jinping held a rare leader-to-leader call on Thursday, as tensions over tit-for-tat tariffs appear to be easing. The dollar strengthened 0.23% to 7.191 versus the offshore Chinese yuan.
Bitcoin rose 4.21% to $104,739.17. Ethereum rose 4.17% to $2,499.02.
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