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U.S. Dollar Surges After Stronger-Than-Expected Jobs Data

The dollar gained broadly on Friday, hitting a five-week high against the yen, as a surprisingly strong U.S. jobs report reinforced the view that the Federal Reserve will leave interest rates alone and not cut them in the near term.

The robust March jobs report eased concerns about the weakening U.S. housing market and signs of softness in U.S. manufacturing.

Fed fund futures fell, with the implied prospects of a June rate cut by the Fed falling to 12 percent from 20 percent before the data was released.

"It was a good number overall for the dollar," said Ron Simpson, director of global currency analysis at Action Economics in Tampa, Florida.

"There had been relatively little priced in for the rate cut yesterday, about 20 percent. This report will bring that number closer to zero. No one really expects the Fed to move in
either direction in the foreseeable future," he said.