New York (ANTARA) – The US dollar strengthened against a basket of other major currencies in late trading on Tuesday (Wednesday morning WIB), driven by the rise in the Purchasing Managers’ Index (PMI) of the American manufacturing sector.
The dollar index, which measures the value of the dollar against six other major currencies, strengthened 0.69 percent to 106.2679.
The US S&P Global composite PMI index increased slightly to 51 in October from 50.2 in September, according to the S&P Global report on Tuesday (24/10). The manufacturing PMI rose slightly to 50 in October from 49.8 in September, while the services PMI rose to 50.9 from 50.1. Both figures were higher than analysts’ estimates.
At the same time, the Eurozone PMI index in October hit its lowest level in three years, raising fears of a recession.
The preliminary HCOB composite PMI for the euro zone, released Tuesday morning by S&P Global and considered a good indicator of the overall health of the economy, fell to 46.5 in October from 47.2 in September and constitutes the lowest level since November 2020.
By the end of trading in New York, the euro fell to $1.0589 from $1.0674.
“Preliminary PMIs mark a poor start to October for the eurozone, especially after showing some early signs of recovery in September,” said Rory Fennessy of Oxford Economics.
The British pound weakened to 1.2162 US dollars from 1.2255 US dollars. The preliminary index of UK service business activity fell to a nine-month low of 49.2 in October, compared with a final reading of 49.3 in September and a forecast of 49.5.
Meanwhile, the US dollar rose to 149.8990 Japanese yen, higher than the previous session’s 149.5640 yen. The US dollar strengthened to 1.3730 Canadian dollars from 1.3682 Canadian dollars in the previous session.
The US dollar rose to 0.8932 Swiss francs from 0.8910, while the dollar strengthened to 11.1128 Swedish crowns from 10.9599 crowns.
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