Dollar rises after U.S. data, but posts largest monthly fall since December
The dollar rose on Friday, extending gains after upbeat data on personal income, spending, and manufacturing in the U.S. Midwest, with market participants also taking profits on the currency’s short dollar positions this month.
The dollar index was down 2.1% for the month of April, its largest monthly loss since December.
Next week’s U.S. data, which includes non-farm payrolls for April and key U.S. manufacturing and services indexes, should reinforce expectations of a strong recovery from the pandemic by the world’s largest economy.
Friday’s data showing a 4.2% rebound in U.S. consumer spending in March, amid a 21.1% surge in income as households received additional COVID-19 relief money from the government, supported the dollar. That led to a 0.4% rise in the core personal consumption expenditures (PCE) index, compared with a gain of 0.3% the previous month.
Similarly, the dollar also gained after the Chicago Purchasing Management Index (PMI) showed a reading for April of 72.1, the highest in almost four decades.
In afternoon trading, the dollar index ended the week up 0.5%. It was last up 0.7% at 91.263, the largest daily gain since late February.
The euro traded 0.8% lower at $1.2025, posting its largest daily percentage fall since late February. But it was up 2.5% for the month versus the dollar, its best monthly showing since July 2020.
The dollar also rose against the yen, up 0.3% at 109.29, rising 1% for the week. But it was down 1.3% for the month, its worst monthly showing since July 2020 as well.
Reference: CNBC
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