Dollar gains after gov’t report shows US added jobs in March, signaling strengthening recovery

Dollar gains after report shows US added jobs

NEW YORK — The dollar rose in thin trading Friday after a government report said the U.S. economy added the most jobs in three years last month, signaling a recovery in the labor market.

U.S. and many European and Asian stock markets were closed for Good Friday. U.S. bond markets closed early.

The 16-nation euro dropped to $1.3487 in late trading in New York from $1.3571 late Thursday. The British pound slipped to $1.5198 from $1.5270.

The dollar rose to 94.54 Japanese yen from 93.84 yen. It also edged up to 1.0106 Canadian dollars from 1.0088 Canadian dollars and rose to 1.0623 Swiss francs from 1.0552 francs.

The Labor Department said Friday that employers added 162,000 jobs in March, slightly below analysts’ expectations of 190,000 but still the biggest increase since March 2007. The unemployment rate remained unchanged at 9.7 percent.

Marc Chandler, currency strategist at Brown Brothers Harriman, wrote in a research note that continuing improvement in the U.S. labor market could allow the Fed to raise interest rates before rates rise in Japan or Europe.

The Federal Reserve has held the key overnight interest rate on loans between banks at a range near zero since December 2008 as it tries to stimulate economic activity. Increasing rates would slow inflation and borrowing, but tends to boost the value of the U.S. currency as yields on dollar-denominated assets rise.