The dollar whipsawed Friday in choppy trading on the view that the much stronger-than-expected U.S. non-farm payrolls report will not persuade the Federal Reserve just yet to raise interest rates again this year.
The U.S. currency did rise immediately after the U.S. jobs data, reversing losses against the yen and climbing to two-week highs against the euro and a five-week peak versus the Swiss franc. But those gains evaporated and the dollar traded mostly flat on the day.
Data showed that non-farm payrolls increased by 287,000 jobs last month, the largest gain since last October. May's payroll count was revised down to only 11,000 from the previously reported 38,000.
"Although the Federal Reserve will take encouragement from this vital data, they simply aren't in a position to consider a rate hike at the moment," said Dennis de Jong, managing director at UFX.com in Limassol, Cyprus.