The unemployment rate fell to 5 percent, the lowest level since April 2008, from 5.1 percent in September. It is now at a level many Fed officials see as consistent with full employment.
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Following the strong U.S. jobs report, interest rate futures have now priced a 70 percent chance that the U.S. Federal Reserve will raise borrowing costs next month, according to the CME Group's FedWatch.
"The data basically confirms the Fed is a go for December as long as nothing goes wrong with retail sales or December's non-farm payrolls," said Kathy Lien, managing director at BK Asset Management in New York. "I think you're going to see a renewed appetite for U.S. dollars."
In early morning trading, the dollar index hit a high of 99.35, its strongest level since mid-April. It was last at 99.19, up 1.27 percent.
The euro fell to a low of $1.0706, its lowest since April, and it last traded down 1.39 percent at $1.0736.
Against the yen, the dollar rose to 123.27 yen, its highest since August, and last traded at 123.24, up 1.29 percent.
The dollar climbed to 1.0076 Swiss francs, its strongest since mid-March.