Additionally, the PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP) tracks the price movement of the U.S. dollar against a basket of currencies, added 0.2% Friday as the U.S. Dollar Index (DXY) rose 0.2% to 94.174.
The strong nonfarm payroll numbers fueled speculation that the Federal Reserve could hike rates faster in the months ahead, which helped bolster the U.S. dollar as higher rates make the USD more attractive to yield-seeking investors around the world.
However, some warned of the recent run-up in the U.S. dollar this year.
“The dollar’s a little cooked” after its big rally, Mark McCormick, head of North American FX strategy at TD Securities, told the Wall Street Journal. “If you get this geopolitical action coming into the market, a lot of recent gains may reverse.”
Fed funds futures rose slightly after the jobs report. The Fed is expected to announce its second rate hike this year after its June 13 meeting.
For more information on the markets, visit our current affairs category.