The dollar rose after a report showed U.S. jobs growth exceeded forecasts, backing the case for the Federal Reserve to continue raising interest rates this year.
A greenback index touched the highest in more than a decade before paring gains after Labor Department data showed lower-than-forecast wage patterns tempered the employment increase. The U.S. currency also strengthened as China’s central bank set a higher yuan fix and state-controlled funds were said to buy equities, damping turmoil that roiled global markets this week.
The U.S. currency has been restrained this year on concern that China’s slowdown will hamper global growth. Tolerance for a weaker currency in the world’s second-biggest economy is viewed as evidence policy makers are struggling to revive growth. The turmoil has largely benefited the yen, which rose 2 percent against the dollar this week as investors sought the safest assets.
The greenback rose 0.4 percent to $1.0889 per euro and was 0.1 percent higher at 117.84 yen as of 1:40 p.m. in New York. The Bloomberg Dollar Spot Index, which tracks the currency versus 10 peers, added 0.4 percent to 1,241.74. The measure has gained for nine of the past 10 days.