The dollar strengthened late Friday as U.S. job growth rebounded strongly in June as government hiring surged but persistent moderate wage gains and mounting evidence that the economy was losing momentum could still encourage the Federal Reserve to cut interest rates this month.
The U.S. central bank last month signaled it could ease monetary policy as early as this month citing low inflation as well as growing risks to the economy from an escalation in trade tensions between Washington and Beijing. However the solid jobs figure is likely to make their decision to cut rate a little more difficult.
Nonfarm payrolls increased by 224,000 jobs last month as government employment rose by the most in 10 months. The economy created only 72,000 jobs in May. Economists polled by had forecast payrolls rising 160,000 in June.