Investing.com - The dollar remained broadly lower against the other major currencies on Wednesday as a series of mixed U.S. economic reports added to doubts over whether the Federal Reserve will raise interest rates in June.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.4% at 95.45, not far from the day’s lows of 95.34.
The Institute of Supply Management said its manufacturing purchasing managers’ index rose to 51.3 in May from 50.8 in April, compared to expectations for the index to tick down to 50.4.
But the new orders index dipped from 55.8 in April to 55.7 and the employment index was flat at 49.2
The report came after a similar survey by research group Markit showing that factory activity slowed slightly in May, hitting the lowest level since September 2009.
The final reading of the Markit manufacturing PMI came in at 50.7, better than the preliminary estimate of 50.5, but below Aprils reading of 50.8.
A separate report showed that U.S. construction spending fell 1.8% in April, the largest monthly decline since January 2011. Economists had forecast an increase of 0.6%.
The figures came after other mixed economic reports earlier in the week raised concerns over the outlook for second quarter growth.
Investors were turning their attention to Friday’s U.S. nonfarm payrolls report for May for fresh indications on the strength of the labor market.
Federal Reserve Chair Janet Yellen said last week it could be appropriate raise rates in the coming months if the economy and the labor market continue to pick up as expected, fueling expectations for a June rate hike.
The Fed hiked interest rates in December for the first time in almost a decade.
The dollar remained sharply lower against the yen, with USD/JPY down 1.19% at 109.37.
The yen strengthened earlier after Japanese Prime Minister Shinzo Abe said he was planning to delay a scheduled sales tax hike by two-and-a-half years, amid ongoing weakness in the economy.
EUR/USD was up 0.39% at 1.1174, while GBP/USD lost 0.44% to trade at 1.4417.
Sterling remained under pressure amid uncertainty ahead of the referendum on Britain’s European Union membership on June 23, with the latest opinion polls showing the two sides neck and neck.