The U.S. dollar continued to rally on Friday on the back of the favorable U.S. jobs data announced in today's report. Financial Times reported that 248,000 jobs were created outside the agricultural sector last month, much higher than the 215,000 jobs that economists had predicted for September. Additionally, August's weak report of 142,000 jobs was revised higher to 182,000. Many analysts believe that such data gives everyone a reason to believe that the U.S. economy is recovering.
Reuters reported that the dollar index hit a high of 86.59 .DXY, its strongest level since June 2010. It was last at 86.56, up 1.1 percent. Financial Times noted that Wall Street equities markets are also rising, with the S&P 500 and the Dow Jones Industrial Average both up 0.9 percent.
Despite the dollar's gains, some analysts say that investors shouldn't expect the Fed to raise interest rates just yet.
"I don't think this report will be enough to persuade the Fed to raise rates sooner than expected. The fact that wage growth is flat suggests very little inflation and gives the Fed more time to be patient with hiking interest rates," said Sireen Haraji, a currency strategist at Mizuho Corporate Bank in New York.
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