WASHINGTON (dpa-AFX) - The U.S. dollar exhibited strength against its major counterparts on Friday as data showing stronger than expected growth in U.S. non-farm payroll employment raised expectations that the Federal Reserve will continue to aggressively tighten its policy.
The Labor Department's data showed that non-farm payroll employment jumped by 390,000 jobs in May after surging by an upwardly revised 436,000 jobs in April. The data has offset the faint hopes that the central bank might slow its planned pace of interest rate hikes.
Economists had expected employment to increase by about 325,000 jobs compared to the addition of 428,000 jobs originally reported for the previous month.
The Labor Department said the unemployment rate remained unchanged at 3.6%. The unemployment rate was expected to edge down to 3.5%.
A separate report from the Institute for Supply Management showed growth in U.S. service sector activity slowed by slightly more than expected in the month of May.
The ISM said its services PMI dipped to 55.9 in May from 57.1 in April. Economists had expected the index to edge down to 56.4. The services PMI dropped to its lowest level since a matching reading in February of 2021.
The dollar index surged to 102.23 by noon, and despite easing to 102.16, is up 0.33% from the previous close.
Against the Euro, the dollar has firmed to $1.0720 from $1.0747.
The dollar is trading at $1.2491 against Pound Sterling, strengthening from $1.2578.
The Japanese currency is trading at 130.82 yen a dollar, compared to 129.88 yen a dollar Thursday evening.
Against the Aussie, the dollar has firmed to 0.7207 from 0.7264. The Swiss franc is down more than 0.5% at 0.9628 a dollar. The Loonie is weaker against the dollar at C$1.2596.
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