Dollar Index Stays Sluggish On Downbeat US Manufacturing Data

Published on Jul 04, 2023 09:34

The dollar index continues to stay sluggish under 103 mark amid downbeat data from the US that could make the Fed rethink its rate hike decision. US ISM Manufacturing PMI for June dropped to the lowest level in three years, as well as stayed below the 50.0 level for the seventh consecutive month, as it marked 46.0 figure versus 46.9 prior. The employment index also fell to 48.1 in June from 51.4 in May, indicating a contraction in employment following two months of expansion. Meanwhile, the new orders index climbed to 45.6 in June from 42.6 in May, although the reading below 50 points to a contraction for the tenth straight month. The report also said the prices index dropped to 41.8 in June from 44.2 in June, suggesting raw materials prices decreased for the second consecutive month. The dollar index that measures the green back against a basket of currencies was trading at 102.66 in early Asia on Tuesday. Dollar now awaits further cues from FOMC minutes and non-farm payrolls this week.