Dollar Soars as U.S. Job Market Surges, Gold Dips Amid Fed Rate Speculations

The U.S. dollar surged after unexpected job growth in September, reducing the likelihood of a significant rate cut by the Federal Reserve. Meanwhile, geopolitical tensions boosted oil prices. This economic resilience stirred potential shifts in monetary policy, impacting currencies, with gold and yen weakening.

The U.S. dollar experienced a substantial gain on Friday, following a report revealing higher-than-expected job growth in September. This development has significantly reduced the expectations of a major rate cut by the Federal Reserve, while easing worries about economic growth.

Labor statistics showed a robust addition of 254,000 jobs last month, surpassing forecasts and leading to positive market reactions. The dollar appreciated against major currencies, with bond yields climbing as traders abandoned their prediction of a half-point rate cut next month.

Despite optimistic jobs data, tensions in the Middle East have created uncertainty in the market, influencing oil prices and investor sentiment. As oil prices surged due to geopolitical risks, the equity market remained stable, reflecting confidence in economic resilience.

(With inputs from agencies.)