The U.S. dollar on Friday achieved healthy gains against the common currency of the European Union on foreign exchange markets in the aftermath of strong jobs data released by the owner of the globe's largest economy, according to Bloomberg.
Speculation is mounting that the U.S. Federal Reserve will back off its economy-spurring monetary stimulus measures after the economy grew by 175,000 jobs last month.
"Expectations of tapering is a positive for the U.S. dollar as it means a slowing in the expansion of the Fed's balance sheet," states a Friday email to Bloomberg penned by senior currency strategist Eric Viloria with Gain Capital Group LLC in New York. "The May nonfarm payroll number was better than expected and the increase in the unemployment rate also coincides with an increase in labor-force participation."
Despite augmenting the workforce, the unemployment rate edged higher to check in at 7.6 percent after having registered at 7.5 percent.
Reuters reports the world's reserve currency was able to climb from early in the trade session when it scraped its lowest value in two months against the Japanese yen.
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