Dollar gains on robust US jobs report

An unexpectedly strong US jobs report Friday sent the dollar sharply higher against the euro, yen and other majors.

The US economy's ability to churn out some 321,000 news jobs in November -- 90,000 more than had been predicted -- underscored the country's divergence with Europe and Japan, both fighting off stagnation.

The jump in job creation raised the chance, some analysts guessed, of an acceleration in the Federal Reserve's move toward an interest rate hike, currently forecast for the middle of 2015.

Yields on medium-term Treasury bonds shot up 10 basis points on the data, showing market expectations for an earlier rate rise.

The report also showed the first hints of a possible quickening pace of wage gains -- something that would make the inflation-focused Fed sit up and take notice.

"Throughout this year, the Fed has been generally satisfied with the absolute number of jobs created, but the missing ingredient in the recipe for a rate hike has been wage growth," said Matt Weller at Forex.com.

"While it is only a one month sample, this much stronger rate of wage growth suggests the potential for demand-pull inflation, and an accompanying interest rate hike, in the first half of next year."

The dollar pushed to $1.2283 per euro, the greenback's best level since August 2012, and to 121.44 yen, the highest since July 2007.