Dollar up in light Friday trade

The dollar rose in thin trading Friday after a government report said the US economy added the most jobs in three years last month, signalling a recovery in the labour market.

Stock markets are closed and trading in the bond markets is abbreviated in the U.S. because of a holiday. The 16-nation euro dropped to $1.3487 in morning trading in New York from $1.3571 late Thursday. The British pound slipped to $1.5185 from $1.5270.

The Labour Department said Friday that employers added 162,000 jobs in March, slightly below economists' expectations of 190,000 jobs gained. Still, it's the biggest increase since March 2007. The unemployment rate remained at 9.7 percent last month.

The Federal Reserve has held the key overnight interest rate on loans between banks at a range near zero since December 2008 as it tries to stimulate economic activity.

Increasing rates would slow inflation and borrowing, but tends to boost the value of the U.S. currency as yields on dollar-denominated assets rise.