Dollar gains on stronger than expected US data
NEW YORK, USA (AP) — The dollar edged up against most major currencies Friday after the US released a stronger-than- expected manufacturing report.
In afternoon trading, the dollar was higher against the euro, pound, yen and franc.
The Institute for Supply Management, a trade group of purchasing executives, said that its index of manufacturing activity rose to 55.3 in June from 53.5 in May. Economists had expected a decline.
“This release indicates some rebound in manufacturing activity and helps allay concerns that the recent slowdown in economic activity will be more long-lived,” said HSBC economist Ryan Wang in a research note.
Also boosting the dollar Friday was a separate report from China which showed that June manufacturing in that country fell to its slowest pace in 28 months.
The dollar sometimes gets a boost when investors are concerned about weakening economic growth and seek safety. The dollar has historically been considered a safe-haven currency.
In afternoon trading Friday in New York, the euro fell to US$1.4504 from US$1.4521 late Thursday.
The euro had jumped nearly four cents this week after the Greek parliament voted for key spending reforms, paving the way to receive aid from the International Monetary Fund and the European Union that will keep it from defaulting this month.
The British pound slid to US$1.6060 from US$1.6069. The dollar rose to 80.85 Japanese yen from 80.58 yen and rose to 0.8485 Swiss franc from 0.8403 Swiss franc.
