World Economy

USD at 7-Month High

USD at  7-Month HighUSD at  7-Month High

The dollar jumped to a seven-month high, pushing oil prices lower, and short-term US bond yields rose to the highest in five years after strong US jobs data bolstered expectations the Federal Reserve will raise interest rates in December, IOL reported. Nonfarm payrolls increased 271,000 in October, the largest gain since last December, while average hourly earnings rose a respectable 9 cents, the US Labor Department said. The unemployment rate fell to 5%, the lowest since April 2008 and in a range many Fed officials consider to be full employment. The robust report boosted the likelihood the Fed will raise rates before year’s end, which would be the first increase in almost a decade and end seven years of easy monetary policy. The dollar index of six major trading currencies hit a high of 99.34, it’s strongest since mid-April. It was last up 1.26% at 99.17. The euro fell to $1.71, its lowest since April, and last traded down 1.31% at $1.07. The dollar rose to 123.26 yen, its highest since Aug. 21, and last traded at 123.21, up 1.21%.