Strong US factory data lifts dollar
Agence France-Presse
NEW YORK — The dollar firmed against the euro Tuesday after a better-than-expected US manufacturing report, while trading was muted as most of Europe took a May Day holiday.
The euro fetched $1.3234 around 2100 GMT, down from $1.3240 at the same time Monday.
Earlier the European currency had climbed to $1.3284, its highest level in a month.
The euro also advanced against the Japanese currency, to 106.05 yen from 105.67 Monday. So did the dollar, at 80.13 yen compared with 79.82 yen the prior day.
“The euro was making gains, and then all of a sudden the ISM numbers landed and the European currency took big hits,” said Charles St-Arnaud, a strategist at Nomura.
The Institute for Supply Management’s manufacturing index rose for the second straight month in April, to 54.8 percent, from 53.4 percent in March.
The sharp gain in the ISM purchasing managers index was unexpected. Analysts had forecast the PMI reading would fall to 53.0 percent.
Though the indicator pointed to stronger growth in the manufacturing sector, a pillar of the economic recovery, traders remained cautious ahead of Friday’s official jobs report for April.
The dollar strengthened against the Swiss currency, to 0.9077 francs from 0.9074 late Monday.
The pound fell to $1.6220 from $1.6233.
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Tags: Business , dollar , Euro , manufacturing , US factory
