The U.S. dollar appreciated against its major counterparts in the European session on Friday, as the nation's job growth accelerated in March, intensifying hopes for a half-point rate hike by the Federal Reserve next month.
Data from the Labor Department showed that non-farm payroll employment jumped by 431,000 jobs in March after surging by an upwardly revised 750,000 jobs in February.
Economists had expected employment to spike by 490,000 jobs compared to the addition of 678,000 jobs originally reported for the previous month.
The strong job growth still contributed to a drop in the unemployment rate, which dipped to 3.6 percent in March from 3.8 percent in February. The unemployment rate was expected to edge down to 3.7 percent.
With the bigger than expected decrease, the unemployment rate fell to its lowest level since hitting 3.5 percent in February of 2020.
U.S. treasury yields rose, with the benchmark 10-year yield touching 2.42 percent.
Money markets are assigning a 75 percent possibility for a half-point rate hike in May.
Elsewhere, Kremlin spokesman Dmitry Peskov said that an alleged Ukrainian attack on a Russian oil depot in Belgorod would obstruct peace talks.
The currency has been trading higher in the Asian session, along with treasury yields as investors await U.S. nonfarm payrolls data that could bolster the case for an aggressive tightening of monetary policy to curb inflation.
The greenback gained 0.5 percent against the franc, touching a 2-day high of 0.9269. At yesterday's trading close, the pair was quoted at 0.9226. The greenback may face resistance around the 0.94 region, if it gains again.
The greenback was up by 0.3 percent against the euro, at a 3-day high of 1.1036. The pair was worth 1.1067 when it closed deals on Thursday. Further rally in the currency may challenge resistance around the 1.08 region.
Flash data from Eurostat showed that Eurozone inflation accelerated further to a new record high in March.
Inflation rose to 7.5 percent from 5.9 percent in February. The rate was also above the economists' forecast of 6.6 percent.
The greenback was higher by 1.1 percent against the yen, at a 2-day high of 123.00. The pair had closed Thursday's deals at 121.65. The greenback is likely to locate resistance around the 125.00 level.
The latest survey from Jibun Bank showed that Japan manufacturing sector continued to expand in March, and at a faster pace, with a manufacturing PMI score of 54.1.
That's up from 52.7 in February and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.
The greenback touched a 2-day high of 1.3090 against the pound, gaining 0.3 percent from Thursday's close of 1.3134. Should the currency rallies again, 1.28 is possibly seen as its next resistance level.
The greenback rebounded modestly against the loonie, with the pair trading at 1.2513. The greenback was trading at 1.2503 against the loonie at yesterday's close. The greenback is seen finding resistance around the 1.27 level.
The greenback bounced off to 0.7481 against the aussie, after falling to 0.7525 around 8:45 am ET. The greenback was worth 0.7482 per aussie at Thursday's New York session close. Immediate resistance for the dollar is likely seen around the 0.72 level.
Data from the Australian Bureau of Statistics showed that Australia home loans fell a seasonally adjusted 4.7 percent on month in February - coming in at A$21.53 billion.
That missed forecasts for an increase of 1.0 percent, which would have been unchanged from the previous month.
Against the kiwi, the greenback rallied to a 3-day peak of 0.6900. At Thursday's close, the pair was valued at 0.6931. Next key resistance for the currency may be located around the 0.66 level.
