Dollar Surges With Economic Report

The dollar reached its third 5-1/2-year high against the yen this week and rose vs. major European currencies Friday after a strong U.S. employment report sparked a rally in the stock market and also boosted interest rates.

The dollar surged in morning dealings after the government reported that a burst of job growth pushed the U.S. unemployment rate to a 24-year low of 4.6 percent in November.

The stock market cheered the news as a sign that the country’s continued economic strength will help offset effects from Asia’s financial turmoil.

“The dollar was looking good before the numbers … and the positive reaction of the stock market locked it all in,” said Tom Hoge, a vice president of corporate trading at Bank of New York.