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FOREX-Dollar gains across the board, bolstered by U.S. jobs

* U.S (Other OTC: UBGXF - news) . economy creates 271,000 jobs

* CME FedWatch sees 70 pct chance of Fed hike in December (Adds U.S. jobs data, changes byline, dateline; previously LONDON)

By Gertrude Chavez-Dreyfuss and Dion Rabouin

NEW YORK, Nov 6 (Reuters) - The dollar jumped to a more than six-month high on Friday after data showed the U.S. economy created more jobs than expected in October, bolstering the case for an interest rate increase next month.

The U.S. currency posted gains across the board, hitting a 2-1/2-month peak versus the yen, a seven-month high against the Swiss franc and a 6-1/2-month peak against the euro.

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Data on Friday showed non-farm payrolls increased 271,000 last month, the largest rise since December. Market economists were expecting 180,000 new jobs.

The unemployment rate fell to 5.0 percent, the lowest level since April (LSE: 0N69.L - news) 2008, from 5.1 percent in September. It (Other OTC: ITGL - news) is now at a level many Fed officials see as consistent with full employment.

Following the strong U.S. jobs report, interest rate futures have now priced a 70 percent chance that the U.S. Federal Reserve will raise borrowing costs next month, according to the CME Group (Kuala Lumpur: 7018.KL - news) 's FedWatch.

"The data basically confirms the Fed is a go for December as long as nothing goes wrong with retail sales or December's non-farm payrolls," said Kathy Lien, managing director at BK Asset Management in New York. "I think you're going to see a renewed appetite for U.S. dollars."

In early morning trading, the dollar index hit a high of 99.319, its strongest level since mid-April. It was last at 99.16, up 1.3 percent.

The euro fell to a low of $1.708, its lowest since April, and it last traded down 1.5 percent at $1.0722.

Against the yen, the dollar rose to 123.07 yen, its highest since Aug. 21, and last traded at 122.87, up 0.9 percent.

The dollar climbed to 1.0068 Swiss francs, its strongest since mid-March. It was last up more 1 percent at 1.0057 francs. (Reporting by Gertrude Chavez-Dreyfuss and Dion Raboiun; Editing by Lisa Von Ahn)