US jobs beat lifts dollar to two-month high, pressuring Bitcoin

US nonfarm payrolls rose by 172,000 in May, stronger than forecasts. The report pushed the US Dollar Index above 100 for the first time in two months, with an intraday high of 100.174 and trading around 100.016 at the latest update.

Investors shifted to cash and bonds after the jobs data as markets updated expectations for Federal Reserve policy. Data from CME FedWatch showed markets placing more than a 70% probability on a Federal Reserve rate increase in December, up from roughly 45% a week earlier.

A firmer dollar coincided with losses in cryptocurrencies. Bitcoin rose about 5% to near $63,000 earlier in the session but surrendered most gains as the dollar strengthened, trading near $62,615 at the latest update.

Veteran trader Matthew Dixon warned the longer-term inverse relationship between the dollar index and cryptocurrencies ‘‘isn’t perfect, but over multi-month periods it is quite strong,’’ and said the current level of the dollar index could be a ‘‘make or break point’’ for Bitcoin and altcoins.

Market participants are focused on the Federal Reserve’s policy meeting in mid-June for further information on the likely path of interest rates.