Investing.com - The dollar traded lower though steadily against
most major currencies on Monday after weak manufacturing numbers
out of China sent investors to the yen, while escalating tensions
in Ukraine softened the greenback as well.
In U.S. trading on Monday, EUR/USD was up 0.06% at 1.3877.
Investors were paying close attention to events unfolding in
Ukraine, after conflict between the government and pro-Russian
separatists grew more widespread and intensified over the weekend,
which weakened the dollar on concerns Washington will get dragged
deeper into the chaos and stifle recovery.
Elsewhere, soft output data out of China sparked safe-haven
demand for the yen, which came at the greenback's expense.
A final reading of China's HSBC manufacturing purchasing
managers' index came in at 48.1 April, down from a preliminary
estimate of 48.3 and missing forecasts for an uptick to 48.4. A
reading below 50 indicates a contraction.
Elsewhere, profit taking from Friday's upbeat jobs report
softened the greenback as well.
The dollar firmed last week after the Labor Department reported
that the U.S. economy added 288,000 jobs in April, well above
expectations for jobs growth of 210,000, while the unemployment
rate dropped to a five-and-a-half year low of 6.3%.
Still, concerns that long-term unemployment will remain a
problem for the U.S. economy tarnished the otherwise positive jobs
report, as the headline jobless rate fell in part due to a drop in
the labor force, a sign that many who have been out of work for a
long time quit looking for jobs and thus are no longer considered
part of the labor pool.
Supporting the U.S. currency, however, was an upbeat report on
the U.S. service sector, which kept the dollar stable throughout
In a report, the Institute of Supply Management said its
non-manufacturing purchasing managers' index rose to a five-month
high of 55.2 in April, from a reading of 53.1 in March, compared to
expectations for a rise to 54.1.
The dollar was down against the yen, with USD/JPY down 0.06% at
102.12 and down against the Swiss franc, with USD/CHF down 0.03% at
The greenback was up against the pound, with GBP/USD down 0.04%
The dollar was mixed against its cousins in Canada, Australia
and New Zealand, with USD/CAD down 0.17% at 1.0955, AUD/USD down
0.02% at 0.9275 and NZD/USD up 0.20% at 0.8681.
The US dollar index, which tracks the performance of the
greenback versus a basket of six other major currencies, was down
0.02% at 79.54.
On Tuesday, the U.S. is to release trade data.
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