Dollar strengthens after more jobs created in US

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.

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