The dollar soared against the yen after much-better-than-expected US job numbers on Friday. The number of jobs created in the US economy came in at a total of 165,000 jobs in April, more than the 145,000 forecast.
Meanwhile the March payrolls numbers were revised higher by 50,000 jobs to a total of 138,000. Also, February’s number was also revised up to 332,000 jobs, the largest since May 2010.
The unemployment rate fell to 7.5 percent from 7.6 percent as a result of the increase in job creation.
The dollar performed the best against the yen, shooting up by 1.2 percent after the jobs data. USDJPY rocketed to 99.17 from a pre-data level of 97.94.
Dollar also rose against the Swiss franc, with USDCHF rising to 0.9398 from 0.9304.
Euro tumbled as a result of the stronger dollar. EURUSD dropped hard and fast to $1.3032 from $1.3145 as the numbers were much higher than expected.
Gold reversed gains as a result of the stronger dollar. The two assets usually have an inverse price relationship. Gold fell to $1,455 from an earlier high of $1,487.
The better-than-expected hiring by American businesses indicated that there is still momentum in the labor market and we are not seeing the spring slump.
The dollar had recently suffered as a result of continuing quantitative easing by the Federal Reserve. The Fed hinted at its FOMC policy meeting on Wednesday that it is flexible with more stimulus measures if necessary.