Dollar Jumps as Unexpected Hiring Surge Sends Yields Higher
- Australia’s dollar falls to weakest mark since April 2020
- Report reinforces bets Fed will be on hold for most of 2025
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The US dollar surged after a hotter-than-expected jobs report reinforced speculation that the Federal Reserve will hold off on cutting interest rates again until the second half of the year.
The prospect pushed up the currency against almost all of its major peers, driving Australia’s dollar to the lowest since April 2020, by promising to keep drawing cash into the US as global investors seize on the higher payouts. With Treasury yields rising after the report, the Bloomberg Dollar Spot Index climbed as much as 0.6% and held its gains late into the New York trading session.