The unemployment rate in the US jumped to 10.2 percent in October, the highest level since 1983, threatening the emerging economic recovery and giving President Barack Obama and Democrats a bigger hurdle to overcome before next year’s Congressional elections.

Payrolls fell by 190,000 last month, more than forecast by economists, a labor department report showed in Washington. The jobless rate rose from 9.8 percent in September. Factory payrolls dropped by the most in four months, and the average workweek held at a record low.

The International Monetary Fund (IMF) said traders are probably using the dollar to fund “carry trades” around the world and the currency may still be overvalued even after its slide this year.

“There are indications that the US dollar is now serving as the funding currency for carry trades,” the IMF said in a report published. “These trades may be contributing to upward pressure on the euro and some emerging-economy currencies.” While the dollar “has moved closer to medium-run equilibrium,” it is still “on the strong side.”

The world’s biggest banks are still too optimistic about the state of their own finances and authorities should be wary of allowing some to exit government support, the Financial Stability Board (FSB) said.

The FSB, a group of regulators charged by global leaders to rewrite global financial rules, said its findings were borne out by the self assessments of 20 global banks given to regulators.