The dollar index (DXY00) on Friday rose by +0.42%. The dollar Friday recovered from a 1-week low and posted moderate gains as T-note yields jumped on the larger-than-expected increase in U.S. May nonfarm payrolls. The dollar Friday initially fell to a 1-week low after the Senate Thursday night passed the bill lifting the debt limit, which sparked a rally in stocks that curbed the liquidity demand for the dollar.
Friday’s U.S. May payroll report was better than expected and bullish for the dollar. May nonfarm payrolls rose +339,000, stronger than expectations of +195,000 and the largest increase in 4 months. Also, Apr was revised higher to +294,000 from the initially reported +253,000. The May unemployment rate rose +0.3 to 3.7%, above expectations of 3.5%.
