The dollar index edged above 100 on Friday after stronger than expected US jobs data reinforced expectations that the Federal Reserve will keep interest rates higher for longer. Nonfarm payrolls increased by 178,000 in March, the strongest gain since late 2024, while the unemployment rate unexpectedly fell to 4.3%, partly reflecting a decline in labor force participation. The data pointed to a stabilizing labor market even as the Iran conflict began.
Meanwhile, geopolitical tensions remained in focus as President Donald Trump escalated rhetoric against Iran, threatening strikes on key infrastructure, while reports indicated further attacks across the Gulf region. Rising energy prices are adding to inflation concerns, keeping markets cautious. Trading activity is likely to remain subdued due to the Good Friday holiday, with US equity markets closed and bond trading on a shortened schedule.
