The dollar strengthened on the back of a better-than-expected manufacturing index

The dollar index, which measures the greenback against six other major currencies, was up 0.49 percent to 102.1527 in late trading.

New York (Armfalcon.com) – The US dollar posted solid gains in late trading Monday (Tuesday morning WIB), after the US Institute for Supply Management (ISM) reported a better-than-expected manufacturing index for April.

The dollar index, which measures greenbacks against six other major currencies, it was up 0.49 percent to 102.1527 in late trading.

In late New York trading, the euro fell to US$1.0969 from US$1.1017 of the previous session, and the British pound fell to US$1.2487 from US$1.2563 in the previous session.

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The US dollar bought 137.4590 Japanese yen, higher than 136.24 Japanese yen in the previous session. The US dollar increased to 0.8962 Swiss franc from 0.8938 Swiss franc, and it increased to 1.3540 Canadian dollars from 1.3537 Canadian dollars. The US dollar rose to 10.3359 Swedish krona from 10.2638 Swedish krona.

The US manufacturing purchasing managers’ index (PMI) increased to 47.1 in April from 46.3 in March, beating the consensus market estimate of 46.8, according to the ISM release on Monday (1/5/2023).

The US dollar index strengthened as traders reacted to the better-than-expected ISM manufacturing PMI report, noted Vladimir Zernov, analyst with market information supplier FX Empire.

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The yield on the 10-year US Treasury also jumped 14.99 basis points on Monday (1/5/2023), lending support to the US dollar.

In addition, the Federal Reserve is expected to raise its benchmark interest rate by 25 basis points on Wednesday (3/5/2023) as traders wait for clues on the next monetary policy move.

source: www.antaranews.com

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