Dollar jumps 0.77% after US adds 165,000 jobs in October
Why it matters: The stronger payrolls report lifted odds of a December Fed rate hike back toward 80% and pushed Treasury yields higher.
The US dollar rallied Friday after a stronger-than-expected October jobs report reinforced expectations that the Federal Reserve will raise interest rates next month. The Labor Department reported nonfarm payrolls rose by 165,000, far above economists’ 65,000 estimate, while September job growth was revised up to 60,000 and the unemployment rate fell to 4.1%. The dollar index climbed 0.77% to 102.26, its biggest daily gain in nearly five months. The euro fell 0.67% to $1.11437. Treasury yields also rose, with the 10-year at 4.85% and the two-year at 4.52%, as traders increased bets on at least a 25-basis-point rate increase in December.