Nov. 6, 2015 8:56 a.m. ET
The dollar surged against its peers Friday, after a report showed that the U.S. economy created more jobs than expected last month, paving the way for the Federal Reserve to raise interest rates in December.
The Wall Street Journal Dollar Index, which gauges the buck against a basket of 16 currencies, was recently at 90.40, its highest level since December 2002, amid gains against the euro, yen and other currencies.
U.S. employers hired at their strongest pace this year in October, Labor Department data showed Friday. Nonfarm payrolls rose a seasonally adjusted 271,000 last month, with revisions showing employers added a combined 12,000 more jobs in September and August than previously estimated. Economists surveyed by The Wall Street Journal had predicted payrolls would rise by 183,000 in October.
Analysts said the numbers would likely reassure Fed officials as they weigh a potential rate increase next month. Higher rates are a boon to the dollar, as they make the currency more attractive to yield-seeking investors.
“It’s a big number,” said Joe Manimbo, senior market analyst at Western Union. “This is a very positive indicator for a rate increase next month, and very positive for the dollar.”
The euro was recently down 1.3% to $1.0740, its lowest level since April. The dollar was up 0.7% at ¥122.64.
Write to Ira Iosebashvili at [email protected]
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