The dollar climbed to a four-year high as the U.S. employment rate fell to a six-year low and the economy added more jobs than forecast, bolstering the case for the Federal Reserve to raise interest rates next year.
Crude dropped below $90 for the first time in 17 months as oil and gas companies led European stocks lower. The dollar declined as the number of Americans filing for unemployment benefits unexpectedly fell.
Stronger demand for goods and services is prompting companies to hold the line on firings and expand headcount. Continued progress in the labor market will be needed to boost aggregate income and drive consumer spending, which accounts for almost 70 percent of the economy.
The Conference Board’s index decreased to 86 this month, weaker than the most pessimistic forecast in a Bloomberg survey of economists, from an August reading of 93.4 that was the strongest since October 2007, the New York-based private research group said today.