World Markets Up Modestly Despite US Jobs Cheer

The dollar jumped to 98.24 yen after the payrolls data from 96.63 yen, while the euro fell to $1.3981 from $1.4190. The dollar had suffered in earlier stages of the stock market rally as investors piled into riskier assets.

Michael Woolfolk, senior currency strategist at the Bank of New York Mellon, said the rally in stocks over the last few weeks has "neatly dovetailed with economic cheerleading" by policymakers on both sides of the Atlantic emphasizing the "green shoots" of recovery.

"The net result has been real money coming off the sidelines, largely out of dollar-denominated deposits, into riskier assets such as equities, commodities and emerging markets," he said.

Woolfolk said Friday's gains for the dollar was more indicative of profit-taking than any change in the recent trend.

Meanwhile, the gains in Britain came despite mounting uncertainty surrounding the future of Prime Minister Gordon Brown another resignation from his Cabinet. James Purnell, who quit his position as works and pensions minister, called on Brown to quit to save the party from a mauling at the next general election.

So far, Brown has held firm and is currently attempting a restructuring of his government. Alistair Darling, the finance minister, has kept his job despite speculation earlier in the week that Brown wanted him out.