Dollar soars to more than 1-year high after jobs data, then pulls back
The dollar jumped on Friday to hit its highest level in more than a year, after data showed stronger U.S. job growth than expected in October, but retreated a bit in late trading as risk appetite improved and stocks rallied.
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% at 94.234, but was still up around 0.1% for the week, which was marked by a bevy of central bank meetings that forced investors to reset rate hike expectations.
Dollar firm as U.S. inflation poses next test
The dollar made a steady start to the week on Monday but was kept below Friday peaks, as currency traders seek a path between markets' volatile interest rate projections and central bankers vowing to keep rates low even as inflation surges.
Figures due Wednesday are expected to show U.S. consumer price growth running hot at 5.8% year-on-year, the next big test of faith in the Federal Reserve's insistence it will be patient with interest rate hikes.
In early Asia trade, the dollar was marginally higher against the yen and crept from a one-week low to 113.49 yen.
After briefly touching a 15-month top of $1.15135 on the euro in the wake of strong U.S. labour data on Friday, the greenback steadied at $1.1566 per euro.
Reference: Reuters
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