The dollar jumped on Friday to an 11-1/2 year high against a basket of currencies as news of robust U.S. employment growth bolstered market sentiment that the Federal Reserve was closer to raising interest rates.

Before a U.S. employment report on Friday, the dollar had already hit an 11-1/2 year high against the euro as interest rate differentials between America and Europe widened in favor of U.S. Treasurys.

The euro was last at $1.0851 against the dollar, off nearly 2 percent for the day. It slipped below $1.10 on Thursday, when the European Central Bank set a Monday start for a 1.1 trillion bond-buying program meant to lower euro zone interest rates.

The dollar index, which values the greenback against six other major currencies, was last up about 1.33 percent at 97.66 after reaching 97.72 for the first time since 2003.

The dollar's gains accelerated after the government reported that U.S. nonfarm payrolls grew by 295,000 in February, exceeding expectations of 240,000, and the unemployment rate fell to a 6 1/2-year low of 5.5 percent.

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"We feel the economy is in a position for the Fed to begin normalizing policy," said Sam Bullard, senior economist at Wells Fargo Securities in Charlotte, North Carolina. "We think it is on the path to make a rate change in June."