U.S. Dollar Moves Modestly Lower After Seeing Early Strength

After moving to the upside early in the day, the U.S. dollar has moved modestly lower over the course of trading on Friday.

The U.S. dollar index is currently down by 0.13 points or 0.1 percent at 94.22 after reaching a high 94.62 in morning trading.

The greenback is trading at 113.38 yen versus the 113.76 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1568 compared to yesterday's $1.1554.

The dollar initially benefited from the release of a closely watched Labor Department report showing stronger than expected U.S. job growth in the month of October.

The report said non-farm payroll employment surged up by 531,000 jobs in October after climbing by an upwardly revised 312,000 jobs in September.

Economists had expected employment to jump by 425,000 jobs compared to the addition of 194,000 jobs originally reported for the previous month.

With employment increasing by more than expected, the unemployment rate fell to 4.6 percent in October from 4.8 percent in September, hitting its lowest level since March of 2020. The unemployment rate was expected to edge down to 4.7 percent.

The Labor Department described the job growth as widespread, with notable job gains in leisure and hospitality, professional and business services, manufacturing, and transportation and warehousing.

The dollar gave back ground over the course of the trading day, however, as optimism about the economy reduced the appeal of the safe haven currency.

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