FOREX-Dollar gains after higher-than-expected US nonfarm payrolls

(Updates with reaction after U.S. payrolls data)

NEW YORK, Jan 5 (Reuters) – The dollar jumped on Friday after data showed the world’s largest economy created more jobs than expected last month, suggesting the Federal Reserve would likely be in no rush to cut interest rates over the next few months.

Data showed the U.S. economy generated 216,000 new jobs in December, exceeding the consensus forecast of 170,000. The unemployment rate was steady from November at 3.7%, compared with expectations of a rise to 3.8%, while average earnings rose 0.4% on a monthly basis, against forecasts of a 0.3% gain.

The dollar index hit 103.10, a new two-week high, and was last at 102.79, up 0.3%.

(Reporting by Gertrude Chavez-Dreyfuss; Editing by Chizu Nomiyama)

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