The U.S. dollar rose on Friday after May's non-farm payrolls report showed employment numbers surged, while traders weighed the merits of the U.S. Federal Reserve possibly skipping a rate hike in June.

The report showed that payrolls in the public and private sector increased by 339,000 in May, far outstripping the 190,000 forecast on average by economists polled by Reuters. May's jump followed a 253,000 rise in April.

Despite strong hiring, the unemployment rate rose to 3.7% from a 53-year low of 3.4% in April.

The dollar index , which measures the U.S. currency against six others, was last up 0.435% at 103.980, on track for its largest daily percentage gain since mid-May. On the week, however, the dollar slipped 0.2%, its biggest weekly decline since early May.

The dollar index slid 0.62% on Thursday, its worst day in almost a month, after Fed officials signaled the central bank will forgo an interest rate hike this month.

The dollar climbed 0.8% against the yen this week, on track for its largest weekly percentage rise since mid-May.

Sterling rose 0.8% against the dollar, on pace for the biggest weekly gain since late April.

The euro was last down 0.45% to $1.07135, off its highest in around a week after a boost on Thursday from European Central Bank President Christine Lagarde, who said further policy tightening was necessary.

The Australian dollar surged after Australia's independent wage-setting body announced that it would raise the minimum wage by 5.75% from July 1. The Aussie rose by as much as 0.93% to $0.663, its strongest since May 24, and was last up 0.59% versus the greenback at $0.661.

Source : Reuters