NEW YORK: The US dollar bounced on Friday after US job growth for July surpassed low expectations but still showed a sharp decline from June, while investors kept an eye on ongoing stimulus talks in Washington. The US Labour Department's report showed nonfarm payrolls increased by 1.76 million in July. While that was better than the 1.6 million economists surveyed by Reuters had forecast, it was still sharply lower than the record 4.8 million in June.

The dollar index, which measures the dollar against a basket of currencies, rose in the wake of the report and hit its highest in three days. It was last up 0.6% at 93.419. The US dollar index's rebound on Friday may not signal an end to its recent weakness, some analysts said.

The euro has retreated from recent highs, and was last down 0.8% at $1.1785, while the British pound also fell 0.8% to $1.3042. The risk-sensitive Australian dollar fell, hurt by concerns about worsening US-Chinese relations and the Reserve Bank of Australia's downbeat assessment of the local economy. It was last down 0.8% at 0.7175.