The dollar rose after the jobs report came in higher than expected while the euro was lower.
The greenback was supported by news that the unemployment rate fell to its lowest level in 18 years and the economy added more jobs than expected.
Nonfarm payrolls rose by 223,000 in May, according to official data released on Friday. The data was higher than the consensus estimate for the creation of 189,000 jobs and above the 178,000 positions that the ADP report indicated on Wednesday.
The jobs report is watched closely by the Federal Reserve for indications of rising inflation in wage growth and to measure its key objective, employment. The positive data increases expectations that the Fed will raise interest rates at its next meeting in June.
The euro remained under pressure despite easing political tensions in Italy. Populist parties Five-Star and League formed a government on Thursday and received the approval from the president. Meanwhile in Spain, Prime Minister Mariano Rajoy faces a vote of no-confidence, which is expected to pass on Friday.
EURUSD dropped 0.27% to trade at 1.1660, hovering at a six-month low.
The dollar was higher against the safe-haven yen, with USDJPY up 0.64% to 109.51.
Meanwhile, the pound recovered, with GBPUSD up 0.27% to 1.3332.
Elsewhere, the Aussie was lower against its U.S. counterpart, with AUDUSD down 0.21% at 0.7552, while NZDUSD slid 0.30% to 0.6979.