The US dollar headed for its third straight week of gains on Friday, perched at a 17-month high as a bond market rout pushed borrowing costs across the globe to multi-decade peaks in the face of inflationary fears over higher oil prices.
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The U.S. dollar headed for its third straight week of gains on Friday, perched at a 17-month high as a bond market rout pushed borrowing costs across the globe to multi-decade peaks in the face of inflationary fears over higher oil prices.
The Dollar Index edged lower after the latest U.S. jobs data, easing 0.1% to 101.86. The dollar extended its loss against the Japanese yen, falling almost 0.7% to 156.99 yen. The euro gained against the dollar, rising 0.05% to $1.1254.
Investors were reeling from a steep global bond sell-off on Thursday that sent yields on benchmark U.S. 10-year Treasuries to 5.344%, their highest since 2002, ahead of a US jobs report that could influence the near-term policy outlook.
The 10-year yield was last down 3.6 basis points, at 5.176% in early trading on Friday, while the rest of the bond market also advanced.
The U.S. economy created far fewer jobs than expected in September, pointing to a surprising soft spot in the labor market and broader economy.
Nonfarm payrolls rose a seasonally adjusted 29,000 for the month while the unemployment rate increased to 4.2%, the Bureau of Labor Statistics reported Friday. Economists surveyed by Dow Jones had been looking for job growth of 84,000 and an unemployment rate of 4.1%.
In addition to the weakness in September, the August jobs count was revised lower to reflect a gain of 133,000 while July switched from a gain to a loss as payrolls fell by 10,000. The revisions in total showed 60,000 fewer jobs than previously reported.
— With reporting by CNBC’s Jeff Cox
