Dollar gains after solid U.S. jobs report dents rate-cut outlook

The dollar strengthened against most major currencies on Thursday, recovering after earlier losses, as stronger-than-expected U.S. job growth for September signaled that the Federal Reserve is likely to hold off on cutting interest rates in December.

Fresh data released Thursday showed employers added more jobs than economists anticipated, although the unemployment rate edged higher. Nonfarm payrolls increased in September, surpassing Reuters’ forecast for a 50,000 gain, while the jobless rate rose to 4.4% from 4.3% in August. The report had been delayed due to the government shutdown.

The yen remained under pressure, weakening 0.41% to 157.82 per dollar. The greenback touched 157.78 yen — its strongest level since January — leaving the Japanese currency poised for a fourth consecutive daily decline.

Elsewhere, the euro, Swiss franc, Australian dollar, and British pound all slipped against the U.S. currency after minutes from the Federal Reserve’s October meeting showed that “many” policymakers had already dismissed the likelihood of a December rate cut, while “several” others still viewed it as possible