The U.S. dollar rallied on Friday after data showed the world's largest economy created more jobs than expected last month, reinforcing expectations that the Federal Reserve will pause its rate-cutting cycle at its policy meeting later this month.

Wall Street stocks slumped and the dollar climbed on Friday as a robust US jobs report dimmed hopes of further interest rate cuts.

Friday rose by +0.44% and posted a 2-year high. Friday’s stronger-than-expected US Dec payroll report pushed bond yields higher and boosted the dollar as unexpected signs of strength in the labor market reduced the chances of Fed rate cuts.

The U.S. dollar rallied across the board on Friday after data showed the world's largest economy created more jobs than expected last month, reinforcing expectations that the Federal Reserve will pause its rate-cutting cycle at its policy meeting later this month.