* Dollar rises after solid U.S. jobs report
* Dollar index still on track for weekly loss
* Poll shows investors expect continued dollar strength in
* Aussie, kiwi hit 3-week highs after positive trade report
(Recasts opening, adds data, quote, changes dateline; previous
By Dion Rabouin
NEW YORK, Jan 6 The dollar rose on Friday,
boosted by a solid U.S. jobs report, but was headed for a second
straight weekly loss after tumbling the day before on mixed U.S.
economic data and apparent action by Chinese authorities to
shore up the yuan.
The dollar gained broadly against major currencies after the
U.S. non-farm payrolls report showed a slowing in hiring in
December but an increase in wages, setting the economy up for
further interest rate increases from the Federal Reserve this
The dollar hit a session high against the yen of
116.74 yen, while the euro, after hitting a one-week high
immediately after the report's release, fell to a session low of
October and November figures were revised to show 19,000
more jobs added than previously reported. The U.S. economy
created 2.16 million jobs in 2016 with the year-on-year increase
in average hourly earnings rising to 2.9 percent.
"Obviously the focus (of the market) was more on the
revision from last month because if you just look at the
headline number it was weaker than expected," said Sireen
Harajli, currency strategist at Mizuho. "But if you look at it
overall it essentially is a flat reading, so it's pretty much in
line with data we're seeing in the U.S. Growth continues to be
Sterling slipped after two days of gains and ahead
of a decision in the next week or two on parliament's role in
Brexit negotiations, while Mexico's peso was boosted by a
second straight day of currency intervention from its central
A Reuters poll on Friday showed that the dollar is expected
to keep strengthening against the euro in the months ahead with
investors putting even chances on reaching parity this year.
The dollar index, which measures the greenback against six
major currencies, was at up 0.4 percent at 101.92 after
having set a 14-year high of 103.820 three days ago.
The dollar had slipped on Thursday following unimpressive
U.S. employment data and a surge in the Chinese yuan as Beijing
made moves to shake out large bets against its currency.
There was more action in Beijing overnight as borrowing
rates for the offshore yuan jumped to their highest in a
year, with the yuan headed for its largest one-week gain since
it was introduced in 2010.
The Australian and New Zealand dollars
briefly hit three-week highs overnight after Australia posted
its first trade surplus in almost three years in November.
(Reporting by Dion Rabouin; Editing by Meredith Mazzilli)