US dollar set for 12th weekly gain after blowout jobs number
interest rates again this year.
The last time the dollar hit that milestone was in 2014.
The greenback this week was up 0.5%, but those 12 consecutive weeks of rises translated to an 8% increase in the dollar's value.
Against the yen, the dollar has advanced in four of the last five weeks.
Data showed U.S. nonfarm payrolls increased by 336,000 jobs last month. The numbers for August were revised higher to show 227,000 jobs added instead of the previously reported 187,000.
Economists polled by Reuters had forecast September payrolls rising by 170,000 jobs.
Post-payrolls, U.S. rate futures have priced in a 31% chance of a rate increase next month, from about 20% on Thursday, according to the CME's FedWatch tool.
The dollar index rose as high as 106.98, but has since pared its gains, trading up 0.1% at 106.43. Against the yen, the greenback gained 0.5% to 149.22.
«Clearly the labor market remains resilient, and continues to impress, despite 500 (basis points) of tightening over the last 18 months,» said Michael Brown, market analyst, at Trader X in London.
«With markets now seeing another 25 (basis-point) Fed hike by year-end as a roughly 50/50 chance, a hotter-than-expected CPI (consumer price index) print next week could seal the deal for such a move to come in November, and spark the next leg of upside in the U.S. dollar,» he added.
Monthly wage growth though remained moderate, with average hourly earnings rising 0.2% after a similar gain in August. In the 12 months through September, wages increased 4.2% after advancing 4.3% in August.
«When we go through the report today, average hourly earnings are probably soft enough that the Fed doesn't need to hike, but we'll see what happens with inflation, I think it
