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Dollar slips near 3.25-month low as stocks lift risk appetite
The dollar index eased 0.0% on Friday as US manufacturing PMI softened, while services PMI rose to the fastest expansion pace in 4.5 years.
The dollar index edged lower on Friday, falling 0.0% and holding just above Thursday’s 3.25-month low as a stock rally reduced demand for dollar liquidity, according to Yahoo Finance.
The move came with mixed US data for the currency. The August S&P manufacturing PMI dropped 0.7 to 53.2 versus expectations for no change at 53.9, while the August S&P services PMI rose 2.8 to 56.8 versus expectations for a decline to 54.0, marking the fastest pace of expansion in 4.5 years.
Against the euro, EUR/USD matched Thursday’s 3.25-month high and finished up 0.0%. Yahoo Finance also pointed to stronger Eurozone activity and sentiment, including manufacturing and composite PMI readings that beat expectations, plus an unexpected rise in consumer confidence to a 6-month high.
In rates expectations, markets were pricing a 40.0% probability of a 25 basis point US rate hike at the next FOMC meeting on September 15 to 16, while also placing a 95.0% chance of a 25 basis point ECB hike at the September 10 meeting, the outlet said.
Latest closeEUR/USD 1.138 ▼0.6%|Dollar index 101.29 ▲0.2%