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Forex - Dollar turns broadly higher as risk appetite crumbles

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Forexpros - The U.S. dollar turned broadly higher against its major counterparts on Monday, as fears over whether U.S. lawmakers would approve a plan to raise the USD14.3 trillion federal debt ceiling and avoid a default boosted safe haven demand.

During U.S. morning trade, the greenback was sharply higher against the euro, with EUR/USD tumbling 1.04% to hit 1.4246.

A report earlier showed that manufacturing in the euro zone slowed to a near standstill last month.

The Markit final euro-zone manufacturing purchasing managers' index fell to 50.4 in July from 52 in June, its lowest level in almost two years.

The greenback was also higher against the pound, with GBP/USD shedding 0.78% to hit 1.6297.

Earlier in the day, a report showed that manufacturing activity in the U.K. shrank in July, contracting for the first time since July 2009.

But the greenback was sharply lower against the yen and the Swiss franc, with USD/JPY sliding 0.30% to hit 76.52 and USD/CHF plunging 0.91% to hit a record low of 0.7786.

Elsewhere, the greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.23% to hit 0.9577, AUD/USD slipping 0.08% to hit 1.0985 and NZD/USD shedding 0.27% to hit 0.8768.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.58% to hit 74.43.

Also Monday, the U.S. Institute for Supply Management said its index of purchasing managers fell to 50.9 in July, compared to June's reading of 55.3. Analysts had expected the ISM PMI to decline to 54.8 in July.

On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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