The dollar rallied against the yen on Friday after stronger-than-expected U.S. jobs data stoked expectations the Federal Reserve may start reducing bond buying sooner than expected.
U.S. employers added 203,000 new jobs in November, exceeding expectations, and the jobless rate fell to a five-year low of 7.0 percent, the Labor Department said.
The dollar jumped 0.9 percent to 102.73 yen, having hit a session peak of 102.89 yen, according to Reuters data, and edging back towards a six-month high of 103.37 yen set earlier in the week. A reduction in the U.S. central bank’s bond-buying activity would lift U.S. bond yields, boosting the currency. Still, some analysts doubted the report was strong enough to push the Fed to move in December. Fed policymakers meet on Dec. 17-18.