* Nonfarm payrolls rose 165,000 in April, jobless rate at
* Dollar on pace for biggest one-day rise in two weeks vs
By Wanfeng Zhou
NEW YORK, May 3 The dollar surged more than 1
percent against the yen and gained versus the euro on Friday
after surprisingly strong U.S. April jobs data fuelled optimism
the U.S. economy may be more resilient than some had feared.
U.S. employment rose more than expected in April with
nonfarm payrolls rising 165,000, while job increases for the
previous months were revised higher. The unemployment rate fell
to a four-year low of 7.5 percent.
The dollar had come under pressure lately after
disappointing economic data stoked concern about the recovery
and investors pared back expectations the Federal Reserve may
taper its bond purchases anytime soon.
"The spring slowdown may not be as pronounced as feared,"
said Omer Esiner, chief market analyst at Commonwealth Foreign
Exchange in Washington.
"It is good news for the dollar especially in light of the
Fed's statement this week which put even more focus on upcoming
U.S. economic numbers."
The dollar rose 1.3 percent to 99.19 yen, on pace for
its biggest one-day rise in two weeks. It hit a session peak of
The Fed said on Wednesday after its policy meeting it will
continue buying $85 billion in bonds each month to keep interest
rates low and spur growth, and added it would step up purchases
if needed to protect the economy.
"The job market and the economy in general appear to be more
resilient than investors had feared," said Joe Manimbo, market
analyst at Western Union Business Solutions in Washington.
"The weight this jobs report carries from month to month can
go some way to reviving the notion that the Fed could taper
later this year."
The euro slid 0.1 percent to $1.3048, erasing early
gains. It fell sharply on Thursday when ECB President Mario
Draghi said the bank was technically ready for negative deposit
rates and noted downside risks to the economy.
The dollar index, which measures the dollar's performance
against six major currencies, rose 0.3 percent to 82.446.