An unexpected surge in the number of people hired by U.S. employers during July boosted the dollar against the yen, lifted oil prices and extended gains on world share markets on Friday.
Nonfarm payrolls rose 163,000 last month, the Labor Department said, beating economists' expectations for a 100,000 gain and offering hope of improvement in the world's largest economy.
The jobless rate, however, inched up from 8.2 percent in June and analysts said that was likely to keep speculation of further monetary stimulus for the economy from the U.S. Federal Reserve intact.
"I feel like this report doesn't clear the air for what the Fed will do. We need to see another jobs report," said Robert Dye, chief economist at Dallas-based Comerica.
The dollar rose to a day's high of 78.61 yen but the euro continued to rise against the greenback to be up 0.7 percent at $1.2272.
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The MSCI world equity index .MIWD00000PUS extended its gains of the day to be up 0.5 percent at 313.75 points, while U.S. stock futures pointed to a strong rise when Wall Street opened .N.
Brent and U.S. crude futures also extended earlier price gains. Brent September crude was up 65 cents at $106.55 a barrel and U.S. September crude was up 92 cents at $88.05 a barrel.