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Dollar pushes higher on strong US jobs data
The dollar pushed higher against the other major currencies, after U.S. jobs data surprised to the upside, fuelling speculation the Federal Reserve could soon begin tapering its stimulus program.
The Bureau of Labor Statistics said the U.S. economy added 204,000 jobs in October, nearly twice Wall Street estimates. Despite the growth in the jobs figure, the overall unemployment rate saw an increase of 0.1 percentage point from the month before to 7.3 percent.
There had been fears the 16 day government shutdown could impact jobs growth.
The report also added that employers added 60 thousand more jobs in September and August, signs a stronger growth in the US economy.
The Federal Reserve’s USD 85 billion in monthly bond purchases had been expected to taper in September. But the Fed and its chairman, surprised Wall Street and decided to hold off on scaling back its stimulus programme amid mixed signals on the economy and figures for job creation that were weaker than they had hoped.
But this latest data could be the signal the Fed needs to move at its December meeting.
On Thursday, it was announced that third-quarter US economic growth came in at a better-than-expected 2.8 percent.
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