NEW YORK/LONDON: The dollar doubled an earlier gain on Friday after a US government report showed jobs grew more than expected, pushing up bond yields and adding to arguments for faster tightening of US monetary policy.
The dollar index against major currencies was up 0.49% to 92.678 at 9:52 a.m. ET (1352 GMT).
The report showed that nonfarm payrolls increased by 943,000 jobs in July. Economists polled by Reuters had forecast a gain of 870,000.
The news rekindled dollar momentum from midweek when
Federal Reserve Vice Chair Richard Clarida suggested that conditions for hiking interest rates might be met as soon as late 2022.
Fed officials have said that improving employment is critical to when they begin to pull back further on extra support the provided for the economy in the pandemic.
Clarida’s remarks lifted Treasury yields after five weeks of declines while “real” yields, excluding inflation, are set to snap a six-week streak of declines.
The yield on the 10-year Treasury note reached as high as 1.29%, up from 1.179% on Monday.
Against the euro, the dollar rose to $1.1772, up 0.5%. The euro was pressured earlier in the day by weaker-than-expected German industrial orders data.
The greenback rose to 110.25 Japanese yen.
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