The dollar fell against a basket of currencies on Monday, ceding some of the ground gained in the previous session, as Treasury yields retreated and lacklustre data weighed on the U.S. currency.
U.S. manufacturing activity grew at a slower pace in April, likely constrained by shortages of inputs amid pent-up demand unleashed by rising vaccinations and massive fiscal stimulus.
The dollar index, measuring the greenback against a basket of six currencies, was 0.4% lower at 90.88, slipping back towards Thursday’s 2-month low despite a boost of 0.7% from month-end flows on Friday.
Treasury yields fall slightly following manufacturing data
Treasury yields dipped on Monday after the release of key manufacturing data.
The yield on the benchmark 10-year Treasury note fell about 3 basis points to 1.608% around 4:00 p.m. ET. The yield on the 30-year Treasury bond fell about 1 basis point to 2.291%. Yields move inversely to prices.
ISM Manufacturing PMI for April came in at 60.7, compared to the expected 65.0. This compares to March’s level of 64.7. The index measures manufacturing activity via a survey of more than 300 manufacturing company purchasing managers conducted every month by the Institute for Supply Management.
IHS MarkitU.S. manufacturing activity grew at a record-high speed in April, data from a survey compiled by IHS Markit showed Monday. April’s Manufacturing Business Activity PMI Index came in at 60.5, above the 59.1 print in March.
Small business owners are feeling more confident, according to a CNBC/SurveyMonkey survey, with sentiment increasing to 45 from a record low of 43 in the first quarter.
The 10-year Treasury yield had already edged lower on Friday following consumer spending data that showed significant jumps in personal income and spending, as well as a rise in prices.
Reference: CNBC
Thai
Eng