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Dollar rallies on strong US jobs data
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NEW YORK, Apr. 7 (AFP) — The dollar staged a strong rally Friday after a solid US employment report prompted the market to raise its expectations for Federal Reserve interest rate hikes.

The euro dropped to 1.2094 dollars at 2100 GMT from 1.2224 dollars late on Thursday in New York.

The dollar stood at 118.29 yen, from 117.69. In late New York trade, the dollar stood at 1.3007 Swiss francs after 1.2901 Thursday. The pound was being traded at 1.7435 dollars after 1.7525 Thursday.

The euro weakened after data showed the US economy had created 211,000 jobs in March, which President George W. Bush said revealed an "economic resurgence."

The "non-farm payrolls" figure given by the Labor Department, while down from a revised 225,000 in February, was well ahead of Wall Street’s forecast for 190,000 extra jobs in March.

The jobless rate fell to a five-year low of 4.7 percent in March, from 4.8 percent in February, the department said.

"No doubt, this payrolls report reaffirms the prospects that the Fed will remain aggressive in the months ahead," senior currency strategist at Investors Bank and Trust, Timothy Mazanec, said.

Michael Woolfolk, senior currency strategist at the Bank of New York, commented: "Strong growth and tight labor market conditions argue for pre-emptive tightening that could very well take the fed funds target rate above 5.0 percent later this year. This is viewed as a dollar positive."

The federal funds rate currently stand at 4.75 percent, their highest level in five years.

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