FX.co ★ Dollar Rebounds on Stronger-Than-Expected US Jobs Data

The dollar index climbed to 99.3 on Friday, rebounding from a two-week low after stronger-than-expected US employment data reinforced expectations of tighter monetary policy. US nonfarm payrolls rose by 162,000 in August, following an upwardly revised increase of 23,000 in July and far exceeding market forecasts for a gain of 56,000. The unemployment rate remained unchanged at 4.1%, while annual wage growth slowed to 3.1%, a smaller deceleration than markets had anticipated. According to the CME FedWatch Tool, money markets are now assigning nearly a 58% probability to a rate hike in September.