Dollar bounces higher after unemployment data

Dollar surges against its rivals after four brutal sessions, which comes following data on unemployment which fell to an eight-year low, which in turn raised confidence in the American economy. 

The dollar index, which measures the U.S. currency against a host of major rivals, traded last at 97.20, up from the opening of 96.59, with a session-high at 97.24, and a low at 96.26. The index slumped to a four-month low yesterday at 96.25. 

Dollar's sharp recovery came as the unemployment rate fell to 4.9%, the lowest since February 2008, compared to December's 5.0%, which showed a better outlook for the American economy and its companies, and the continuing strengthening of the jobs market. 

However, job growth in January fell to 151 thousand, compared to December's 292K, but markets brushed it off, focusing on the other positive data, as the Federal Reserve depends more on the unemployment rate to set its policies and not the volatile payrolls report. 

Confidence in the U.S. economy is shining again, with a chance that the central bank could stick to its monetary tightening policy after all this year and raise interest rates gradually.