Dollar Surges as Wage Gain Supports Case for Fed Rate Increases
- Greenback up from 3-month low versus euro, pares weekly drop
- U.S. jobless rate declines to eight-year low of 4.9 percent
How Will U.S. Jobs Report Impact Fed Rate Policy?
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The dollar rebounded from a three-month low against the euro after a U.S. employment report showed wage growth that exceeded estimates, bolstering the case for the Federal Reserve to continue raising interest rates this year.
The greenback climbed versus most of its major peers after data showed average hourly earnings rose 0.5 percent, hinting at a pickup in inflation toward the central bank’s 2 percent target. The jobs data provided temporary relief for the dollar, which posted the biggest two-day decline since 2009 this week on concern slowing economic growth may force the central bank to reverse its tightening course.