U.S. payrolls exceed expectations in June
Rate futures price in 75bps hike
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NEW YORK, July 8 Reuters The U.S. dollar rose on Friday after data showed the world39;s largest economy created more jobs than expected in June, cementing expectations of another 75 basispoint hike at the Federal Reserve39;s policy meeting later this month.

Earlier in the session, the greenback hit a fresh twodecade high against a basket of currencies, led by gains against the euro amid signs the euro zone economy will tip into recession. The dollar has hit consecutive 20year peaks this week, gaining in five of the last six weeks.

The dollar index was last up 0.3 at 107.30.

Friday39;s data showed that U.S. nonfarm payrolls increased by 372,000 jobs last month. Economists polled by Reuters had forecast 268,000 jobs added last month. 

Fed funds futures priced in a more than 90 chance of a 75bps rate hike this month, with about 187 bps of cumulative tightening by the end of the year. That was up from 181 bps late Thursday.

Certainly it solidifies the view that there39;s going to be a 75basispoint increase in the next two weeks when they meet, but beyond that, it probably doesn39;t have much implications because we39;re going have more data points before that, said Tom Plumb, portfolio manager at Plumb Balanced Fund in Milwaukee.

We are still in the case where bad news is good news and good news is bad news. So that39;s going to be the case until…