The U.S. dollar jumped Friday as traders weighed the latest reading on the U.S. labor market.

The dollar index — which tracks the greenback’s performance against a basket of other currencies — traded 0.8% higher at 106.57. Against the yen, the dollar rallied 1.58% to 134.95. The euro was also down 0.63% against the dollar at $1.0178.

The U.S. economy added 528,000 jobs in July, well above expectations. Wages also grew at a faster-than-expected pace.

Meanwhile, sterling was down 0.73% at $1.2068, a day after the Bank of England (BoE) raised rates by the most in 27 years to fight surging inflation, but warned a long recession was coming, beginning in the fourth quarter of this year.