Investing.com - The dollar pushed broadly higher against a basket of other major currencies on Friday, after data showed that the U.S. economy added far more jobs than expected last month and that unemployment fell to the lowest level since July 2008.
The U.S. Department of Labor said the economy added 295,000 jobs last month, beating expectations for an increase of 240,000. January's figure was revised to a 239,000 gain from a previously estimated 257,000 increase.
The U.S. unemployment rate fell to a six-and-a-half year low of 5.5% in February from 5.7% the previous month, compared to expectations for a downtick to 5.6%.
U.S. average hourly earnings rose 0.1% in February, the report added, disappointing expectations for a 0.2% gain, after an increase of 0.5% in January.
A separate report showed that the U.S. trade deficit narrowed to $41.80 billion in January from $45.60 billion in December, whose figure was revised from a previously estimated deficit of $46.60 billion. Analysts had expected the trade deficit to narrow to $41.70 billion in January.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 1.13% to 97.49.
The euro dropped to fresh 11-1/2 year lows, with EUR/USD down 1.31% to 1.0883.
The euro remained under pressure after European Central Bank President Mario Draghi confirmed on Thursday that the ECB will begin purchasing euro zone government bonds on March 9 under its new quantitative easing program.
The combined asset purchases will amount to €60 billion per month and are expected to run until September 2016, or until the ECB sees that inflation is on a “sustained path” to its target of close to, but below, 2% in the medium term.
The dollar was higher against the yen and the Swiss franc, with USD/JPY up 0.81% at 121.11 and with USD/CHF climbing 0.80% to 0.9818.
In Switzerland, official data earlier showed that consumer prices fell 0.3% last month, compared to expectations for a 0.1% downtick, after a 0.4% decline in January.
In other trade, sterling fell to one-month lows, with GBP/USD tumbling 1.08% to 1.5081.
The Australian, New Zealand and Canadian dollars were broadly lower, with AUD/USD down 0.55% at 0.7739 and NZD/USD plummeting 1.22% to 0.7393, while USD/CAD advanced 0.87% to trade at 1.2595.
Statistics Canada reported that the trade deficit widened to C$2.45 billion in January from C$1.22 billion in December, whose figure was revised from a previously estimated deficit of C$0.65 billion. Analysts had expected the trade balance to swing into a surplus of C$0.30 billion in January.
Data also showed that building permits in Canada dropped 12.9% in January after a downwardly revised 6.1% rise the previous month. Analysts had expected building permits to increase by 5.5% in January.