The greenback surged on Friday as figures revealed that US firms added much more jobs in January than  predicted, perhaps giving Fed more room to continue raising interest rates.

The dollar index that gauges the greenback versus its major pairs edged up by 0.72% at 102.51.

EUR/USD slumped by fell 0.57% at $1.08490.

USD/JPY advanced by 1.29% at 130.39.

According to the most anticipated employment data from the Labor Department, nonfarm payrolls increased by 517,000 jobs in the past month. Data for December was adjusted to reflect a larger number of jobs added 260,000 as opposed to the previously reported 223,000.

Following a 0.4% increase in December, the average hourly wage advanced by 0.3%. This reduced the pay growth from 4.8% in December to 4.4% in the following month. 185,000 new jobs and a 4.3% surge in earnings were what economists surveyed by Reuters had predicted.

According to traders, Fed's policy rate is now projected to hike at 4.98% in June, up from 4.88% on Thursday afternoon, according to traders.