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US dollar falls vs euro after manufacturing data

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The US dollar fell against the euro on Monday after eurozone manufacturing data outshone a similar US report.

[NEW YORK] The US dollar fell against the euro on Monday after eurozone manufacturing data outshone a similar US report.

The euro, which hit a session high of US$1.1536 and for the first time in nine months was trading above US$1.15, was fetching a tick below that, at US$1.1535, around 2100 GMT.

On Friday, the greenback traded at US$1.1452 per euro.

The Markit eurozone PMI index for manufacturing was revised slightly higher for April, although growth in the 19-nation bloc remained lackluster.

Later in the day, the Institute for Supply Management issued its US manufacturing PMI, which showed growth slowing in the same month and at a weaker-than-expected pace.

"Most of the strengthening in the euro came after the ISM numbers," said Eric Viloria, currency strategist at Wells Fargo Securities.

"The move above US$1.15, previously seen as a resistance level, could also have seen some further follow-through."

Traders remained largely focused on Japan, where the yen, already strong since the beginning of the year, soared last week after the Bank of Japan's decision to not provide more stimulus to the ailing economy.

The dollar and the euro advanced slightly against the yen, paring back some of last week's losses.

"Japan's economy minister call the recent strength in the yen 'extremely concerning' but without commitment from the BOJ to ease policy further, a reversal in the yen's rally looks unlikely," said Omer Esiner of Commonwealth Foreign Exchange.

AFP