Economics
Dollar Strengthens After August Jobs Report Backs Fed Rate Rise
- U.S. currency's biggest gains are against rand, real
- Wage growth and declining unemployment rate fuel demand
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The dollar rose as U.S. labor data for August bolstered expectations that the Federal Reserve will raise interest rates this month for the first time since 2006.
Led by gains against South Africa’s rand and the Brazilian real, the U.S. currency climbed versus most of its 16 major peers as government statistics showed wages grew faster than forecast while the unemployment rate declined. The Fed is scrutinizing data for signs of inflation and job creation as it looks to raise its target from virtually zero. The prospect of higher U.S. rates raises the appeal of dollar-denominated holdings.