Investing.com - The dollar moved higher against a basket of other major currencies on Thursday after data showed that the U.S. economy added more jobs than expected in June bolstered the outlook for the wider recovery.
The greenback was boosted after the Labor Department reported that that U.S. economy added 288,000 jobs last month, easily surpassing expectations for an increase of 212,000.
The previous month’s figure was revised up to a gain of 224,000 from a previously reported increase of 217,000.
The U.S. unemployment rate fell to 6.1% from 6.3% in May, the lowest in almost six years.
The data was released one day earlier than usual due to the July 4 U.S. Independence Day holiday on Friday.
EUR/USD was down 0.39% to 1.3605 from around 1.3652 ahead of the jobs data.
The euro came under pressure after European Central Bank President Mario Draghi reiterated the bank’s forward guidance that rates will remain on hold at present or lower levels for an extended period.
The ECB left all rates on hold earlier Thursday, in a widely anticipated decision, after cutting rates to record lows in June.
Sterling eased back from almost six-year highs, with GBP/USD slipping 0.15% to 1.7140.
The pound gave up gains earlier Thursday after data showed that the U.K. service sector slowed more than expected in June, but activity remained robust with new business growth and payrolls increasing. The data did little to alter expectations that the Bank of England will hike rates before then end of the year.
USD/JPY was up 0.44% to two-week highs of 102.22, while USD/CHF added 0.55% to trade at 0.8937.
The Australian dollar extended its pullback from recent seven-month highs, with AUD/USD dropping 0.93% to 0.9355.
The Aussie weakened earlier Thursday after Reserve Bank Governor Glenn Stevens said the currency was overvalued and added that the central bank had “ammunition” to push interest rates even lower if necessary.
Elsewhere, NZD/USD was down 0.17% to 0.8757. The Canadian dollar was higher, with USD/CAD down 0.21% to 1.6041, not far from Wednesday’s six-month low of 1.0625.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.39% to 80.28, rebounding from the two-month lows of 79.84 reached earlier in the week.