The U.S. dollar climbed higher against its major counterparts on Friday, as strong jobs data raised hopes the Federal Reserve will keep interest rates at higher level for many more months.
Data from the Labor Department showed that non-farm payroll employment soared by 517,000 jobs in January after surging by an upwardly revised 260,000 jobs in December.
Economists had expected employment to increase by 185,000 jobs compared to the addition of 223,000 jobs originally reported for the previous month.
The report also said the unemployment rate edged down to 3.4% in January from 3.5% in December. The dip surprised economists, who had expected the unemployment rate to inch up to 3.6%.
A separate report from the Institute for Supply Management showed service sector activity rebounded by much more than expected in the month of January.
The ISM said its services PMI jumped to 55.2 in January from a revised 49.2 in December, with a reading above 50 indicating growth. Economists had expected the index to inch up to 50.4.
The dollar index, which was down at 101.55 in the Asian session, rallied to 103.01 later on in the session, gaining about 1.25%.
Against the Euro, the dollar firmed to 1.0797 from 1.0911.
The dollar is strong against Pound Sterling, gaining nearly 1.5% to 1.2053.
Against the Japanese currency, the dollar has strengthened to 131.20 yen, rising from 128.72 yen.
The dollar is firm at 0.6922 against the Aussie, advancing about 2.2% from Thursday’s close of 0.7077.
Against Swiss franc, the dollar has rallied to CHF 0.9260 from CHF 0.9132. The Loonie is weak as well against the dollar, easing to C$ 1.3405 from C$ 1.3319.