Dollar Trades Higher As Manufacturing Data Misses Estimates

Dollar Trades Higher As Manufacturing Data Misses Estimates

04 May 2021 07:39 AM

The USDINR NDF is currently trading at 73.91/73.92.

The dollar recovered from its losses on Tuesday after an unexpected slowdown in U.S. manufacturing growth prompted investors to trim bets that a booming U.S. economy could boost the greenback.

Data showed shortages of basic materials and transport snarls depressed the Institute for Supply Management manufacturing survey by 4.7 points to 64.7, toppling the dollar from a three-week peak on the yen and a two-week high on the euro.

Asia trade thinned by holidays in Japan and China, further moves were muted, leaving the dollar to drift up slightly off overnight levels to sit at 109.14 yen and at $1.2054 per euro. Benchmark ten-year U.S. Treasury yields fell 2.5 basis points on Monday following the ISM miss.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was little changed at 14,676.

Brent crude was trading up 0.15% at $67.66 while U.S. light crude was 0.12% higher at $64.56.