LONDON (Reuters) - The euro rose against the dollar on Friday and euro zone bonds yields fell after data showed a big increase in the U.S. unemployment rate in August, supporting the view that Federal Reserve might be finished with interest rate rises.
Data from the U.S. Labor Department showed the unemployment rate rose by more than expected in August to 3.8% from 3.5%, its highest since February 2022.
Figures showed 187,000 jobs were created last month, above expectations for an increase of 170,000. July's figure was downwardly revised to 157,000 from 187,000.
The euro gained against a softer dollar and was last up 0.2% at $1.0866.
Euro zone government bond yields dropped, with the German 10-year yield falling to its lowest since August 9 at 2.446%. It was last flat at 2.47%.
The STOXX 600 moved higher after the data, but stayed within the day's range and was last up 0.2%. An index of euro zone banks fell marginally and was last down 0.14% at a session low.
(Reporting by London Markets Team; Editing by Amanda Cooper)