Strong U.S. payroll growth lifted the dollar Friday after technology-led losses swept Asian markets, while traders raised their bets on a Federal Reserve (Fed) rate increase at its December meeting.
The U.S. Bureau of Labor Statistics (BLS) said nonfarm payrolls rose by 165,000 in October, compared with 65,000 expected in a Reuters poll. Unemployment was 4.1%, and September’s payroll gain was revised to 60,000. The report was released at 8:30 a.m. ET on Friday, Nov. 6.
After the release, Reuters reported the dollar index up 0.77% at 102.26 and the euro down 0.67% at $1.11437. Futures pricing implied nearly an 80% chance of at least a 25-basis-point increase at the Fed’s December meeting, Reuters reported.
During Asian trading, the dollar rose 0.4% to 158.3 yen per dollar and gained 0.2% to 0.8179 Swiss francs per dollar, Reuters reported. The euro fell 0.4% to $1.1174. Reuters quoted Chris Turner, ING’s global head of markets, as saying investors were shifting into cash while staying in dollars: “we are seeing a rotation into cash and not out of the dollar.”
South Korea’s Kospi fell as much as 8.5% early Friday, triggering a 20-minute trading halt, while Japan’s Nikkei 225 dropped 7%, CNA reported. Both indexes ended the day down about 6%, according to The Associated Press. The declines followed a 4.4% fall in the S&P 500 and a 5.5% drop in the Nasdaq Composite on Nov. 5. The Associated Press said the S&P 500’s decline was its steepest since April 2025.
The Associated Press and Reuters linked the selloff to investor concerns that Democratic gains in the U.S. midterm elections could lead to greater scrutiny of artificial intelligence and data-center construction. Reuters separately reported that lawmakers, congressional aides and advocates expected Democrats to pursue legislation on AI systems and data-center development after taking control of Congress in January. Reuters did not identify a specific bill.
Reuters also linked yen gains during an October AI-stock selloff to demand for safety; EconoTimes covered the yen’s weekly rise during that episode. U.S. stocks recovered some ground Friday, with the S&P 500 up 0.3% and the Nasdaq Composite up 1.1%, while Tokyo and Seoul closed lower.
The next U.S. jobs report is scheduled for Dec. 4 at 8:30 a.m. ET. The Fed’s next meeting is Dec. 8-9.
