The dollar index rose 0.77% to 102.26 after US payrolls increased by 165,000 last month, above the 65,000 estimate, and the unemployment rate fell to 4.1%. Market expectations for a December Fed rate hike moved back toward 80%.
The dollar index surged on Friday after stronger-than-expected US payrolls strengthened expectations for a Federal Reserve rate hike next month. The Labor Department reported a 165,000 increase in nonfarm payrolls last month, following a revised 60,000 gain in September; the unemployment rate dipped to 4.1%.
Expectations for a December increase of at least 25 basis points moved toward 80%, after falling to about 67% on Thursday. The dollar index rose 0.77% to 102.26, while the euro fell 0.67% to $1.11437. The 10-year Treasury yield rose 1.6 basis points to 4.85%, and the 2-year yield gained 4.1 basis points to 4.52%.
New York Fed President John Williams said economic growth had remained resilient but inflation was too high and needed to return to 2%. St. Louis Fed President Alberto Musalem described inflation as a top concern, while San Francisco Fed President Mary Daly said the Fed would likely need to raise rates further.
