U.S. Dollar Falls as Manufacturing Slumps to 2-1/2-Year Low
The U.S. dollar fell near a one-week low on Monday after manufacturing activity for May fell to its lowest level since October 2016, increasing concerns about the impact of the global trade war on the economy.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, lost 0.2% to 97.445 by 10:22 AM ET (14:22 GMT).
The Institute for Supply Management said its U.S. manufacturing PMI declined to a two-and-a-half year low of 52.1 in May from 52.8 in April.
The data comes after manufacturing contracted in most Asian countries and the euro zone in May, as the trade war between the U.S. and China starts to be felt around the world.
Tensions have increased, with U.S. President Donald Trump threatening increased tariffs on Mexico over immigration disputes, while discussions with China have all but officially ended.