The dollar surged on Friday after the influential April jobs report signaled the U.S. labor market was stronger than expected. That could stoke more expectations for Federal Reserve interest rate hikes, which are broadly dollar supportive. As U.S. yields rise that increases the attraction of dollar-denominated assets to foreign investors. Non-farm payrolls rose by 274,000 in April easily beating economists forecasts for a rise of 170,000. The jobless rate was 5.2 percent, matching forecasts. "The dollar has shown a relatively sharp (rise) in initial reaction and seems to be reacting a little more strongly than the Treasury market at this point. Across the board it is a strong report, with all the industry categories up on the month," said Jason Daw, senior G10 foreign exchange strategist with Merrill Lynch, New York.