Market Watch

Dollar inches higher after payrolls, but gains tempered by election jitters

Market Watch

The U.S. dollar rose against the euro and the yen on Friday, following a payroll report that showed the labor market continued to improve.

Trading was volatile, with next week's presidential election still a major source of uncertainty for markets. Meanwhile, the British pound rose modestly against the dollar, extending a rally from the prior session.

About 161,000 jobs were added in October , while the unemployment rate fell under 5%. The job gains in both August and September were also revised higher.

"The report looks decent, and it's certainly strong enough," said Kit Juckes, chief currency strategist at Societe Generale. "It's a good number, and that would typically be good for the dollar, but the election should remain the big driver, and this data could easily get thrown under the bus the next time a poll comes out."

While Democrat Hillary Clinton is still expected to win out over Republican Donald Trump, the race has tightened in recent days, according to a variety of polls. That has spurred some volatility, as many markets are seen as having priced in her victory.

The euro was at $1.1090 from $1.1103 late Thursday, while against the Japanese yen, the dollar changed hands at Y=103.16, compared with Y=102.99.

The WSJ Dollar Index added less than 0.1% to 97.17.

The British pound traded at $1.2477 from $1.2465, though trading was volatile in the U.K. currency. It swung between a low of $1.2449 and a high of $1.2501 throughout the session. On Thursday, the pound surged to a nearly one-month high as a U.K. court ruling made a "hard Brexit" appear less likely, and as the Bank of England played down the chances of a further cut in interest rates.

Also see: Matthew Lynn: Currency markets get Brexit wrong again In other trades, the Australian dollar changed hands at $0.7674 from $0.7685. Earlier, it rose to intraday highs of $0.7697 after the release of strong Australian retail sales, which rose in September at a faster pace than forecasts.

The Turkish lira TRYUSD,