The dollar touched a five-week high against the yen and a six-week peak against the euro on Friday as better-than-expected U.S. jobs data reinforced expectations the Federal Reserve would start scaling back its asset purchases as early as September.
Futures traders were also betting the U.S. central bank will start raising short-term interest rates by September of next year, a step that would make dollar assets more attractive.
Almost all the components of the U.S. nonfarm payrolls report for June were positive for the economy, suggesting that the labor market was stabilizing. Employers added 195,000 jobs, compared with forecasts of 165,000, while the unemployment rate was steady at 7.6 percent as more people entered the workforce.
The U.S. Labor Department also revised payrolls for April and May to show 70,000 more jobs created than previously reported.