Dollar set for second straight weekly gain after US jobs data
The dollar gained on Friday after data showed slower than expected U.S. jobs growth, suggesting the Federal Reserve could leave interest rates unchanged later this month.
The unemployment rate fell to 4.4% last month from a revised 4.5% in November, the U.S. Labor Department reported on Friday, even as employers added 50,000 jobs in the month. Economists polled by Reuters had forecast a gain of 60,000.
The latest job market data appears to give the central bank a bit of breathing room to leave short-term borrowing costs where they are, as Federal Reserve Chair Jerome Powell last month signaled policymakers are inclined to do at least in the near term.
Financial markets had been bracing for a possible Supreme Court decision that could strike down President Donald Trump'ssweeping tariffs. But the court will now not issue that ruling on Friday, though a decision could still come next week.
The U.S. economy added 50,000 jobs in December, according to Labor Department data released on Friday. That was lower than an estimated increase of 60,000 jobs forecast by economists in a Reuters poll.
The dollar was up 0.2% to 0.801 against the Swiss franc, headed for the second straight week of gains.
The dollar index rose 0.25% to 99.13 and was set for the second consecutive week of gains.
The Japanese yen weakened following a report that Prime Minister Sanae Takaichi is considering calling a snap election for parliament's lower house in the first half of February.
Data showed Japanese household spending, opens new tab unexpectedly grew in November from a year earlier, indicating that consumption accelerated before the Bank of Japan lifted its policy rate to a 30-year high in December.
The dollar hit a one-year high of 158.185 against the yen . It was last up 0.64% to 157.88 yen, on track for the second straight week of gains.
The euro was down 0.2% at $1.1635, on track for the second straight week of losses against the dollar.
In other currencies, the pound sterling was down 0.24% to $1.3403, while the Canadian dollar weakened 0.32% versus the greenback to C$1.391 per dollar.
And the Australian dollar weakened 0.13% versus the greenback to $0.6688. Bitcoin fell 1.05% to $90,247.14.
Source: Reuters.com
