What happened
The dollar rose sharply after the release of highly anticipated US employment data showing August job gains far exceeded expectations.
The move lifted expectations that the Federal Reserve could raise interest rates in the coming months, possibly as early as this month.
The dollar index climbed to an intraday high of 99.932, up 0.5% on the day from around 99.035 before the data release, while the euro fell to $1.1583 from about $1.1623.
Why it matters
Stronger-than-expected job growth is often seen as a signal of economic resilience, giving the Fed more room to tighten policy sooner than markets had anticipated.
A higher dollar could put pressure on global trade and emerging-market currencies, while a potential near-term rate hike would ripple through borrowing costs and asset valuations.
Key facts
US employment data for August showed job gains far exceeding expectations.
The dollar index DXY hit an intraday high of 99.932, up 0.5% for the day.
Before the data, the dollar index was around 99.035.
EUR/USD fell to $1.1583 from approximately $1.1623 prior to the release.
What to watch next
Whether the Federal Reserve signals a rate hike at its upcoming meeting this month or in the near future.
Further movement in the dollar and major currency pairs as markets digest the data and central bank commentary.