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Strong Economy Can’t Stop Dollar

Sat., June 8, 1996

The dollar rebounded from early weakness to close higher Friday after the government reported solid job growth in May - powerful evidence of economic health and looming increases in U.S. interest rates.

The dollar’s strength was notable because the strong economic numbers initially alarmed the stock and bond markets, which tumbled over fear they portended higher inflation. Such sell-offs have weakened the dollar in the past. The stock and bond markets partly recovered later.

Indeed, there was some initial dollar selling when the Labor Department said the economy created 348,000 jobs last month, more than double what forecasters expected.

Tags: business

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