Dollar Falls, Wall Street Dips after Manufacturing Decline Data

تم نشره في Thu 1 September / Sep 2016. 12:00 AM
  • Four thousand U.S. dollars are counted out by a banker counting currency at a bank in Westminster, Colorado November 3, 2009. - (REUTERS)

NEW YORK — The US dollar fell against a basket of currencies on Thursday after US manufacturing activity unexpectedly declined in August, casting some doubts on the strength of US economic growth. Wall Street’s S&P 500 and the Dow indices dipped as well after sluggish monthly factory activity data dented optimism about the economy and oil prices declined, as investors exercise caution ahead of a payrolls report on Friday.

A report from the Institute of Supply Management showed US factory activity contracted for the first time in six months in August as new orders and production tumbled, but data on the labour market pointed to a pickup in third quarter economic growth.

The Institute for Supply Management (ISM) said its index of national factory activity fell 3.2 percentage points to a reading of 49.4, the first contraction since February.

Energy shares, down 0.9 per cent, also weighed as oil prices declined on worries about a supply glut. US crude CLc1 was off 3.1 per cent at USD43.31 a barrel while Brent LCOc1 shed 2.9 per cent to USD45.52.

The data overturned earlier dollar strength as investors wait on highly anticipated jobs data due on Friday for new clues on when the Federal Reserve will next raise interest rates.

The dollar index, which measures the greenback against a basket of six major currencies, fell 0.40 per cent to 95.635, after earlier trading as high as 96.239.

The greenback also declined to 103.28 yen JPY, after earlier rising to 104.00, the highest since July 29.

Sterling jumped 1 per cent against the dollar and hit a one-month high against the euro on Thursday after data showing the British manufacturing sector staged one of its sharpest rebounds on record in August.

The Markit/CIPS Purchasing Managers' Index (PMI) jumped to a 10-month high of 53.3 in August, recovering from the three-year low it hit in July after Britain's June 23 vote to leave the European Union.

Sterling rose to USD1.3270 GBP=D4, from USD1.3152 before the data, while the euro fell 0.65 per cent to 84.41 pence per euro EURGBP=D4, down from 84.68 pence beforehand.