Investing.com - The U.S. dollar slid lower against its major counterparts on Tuesday, as demand for higher yielding assets remained supported after data showed that the U.S. manufacturing sector expanded at the quickest rate since June last month.
During U.S. morning trade, the dollar was lower against the euro, with EUR/USD surging 0.85% to hit 1.3044.
The Institute for Supply Management said its index of purchasing managers rose by 1.2 points to 53.9 in December from 52.7 in November.
Analysts had expected the ISM PMI to ease up by 0.5 points to 53.2 in December.
The euro had been boosted earlier after data showing that the number of unemployed people in Germany fell more-than-expected in December, while the country’s jobless rate dropped to a record low.
The report came a day after data indicating a slowdown in the rate of contraction in the manufacturing sector in the euro zone.
But worries over sovereign debt issues in the euro zone lingered, with Italian 10-year bond yields hovering just below the critical 7% threshold, as investors looked ahead to bond auctions by Germany and France later in the week to gauge borrowing conditions in the region.
The greenback was also lower against the pound, with GBP/USD rising 0.61% to hit 1.5606.
A report earlier showed that manufacturing activity in the U.K. improved in December, but remained in contraction territory for the third consecutive month.
The greenback was lower against the yen and the Swiss franc, with USD/JPY sliding 0.15% to hit 76.77 and USD/CHF falling 0.70% to hit 0.9331.
In Switzerland, data showed that manufacturing activity increased more-than-expected in December, returning to expansionary territory after contracting in the three previous months.
In addition, the greenback was weaker against its Canadian, Australian and New Zealand cousins, with USD/CAD tumbling 0.99% to hit 1.0086, AUD/USD rallying 1.32% to hit 1.0369 and NZD/USD jumping 1.43% to hit 0.7895.
The Australian dollar was boosted after data showing that Chinese manufacturing activity expanded in December after contracting the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.63% to hit 79.77.
Later Tuesday, the U.S. Federal Reserve was to publish the minutes of its December policy-setting meeting.
During U.S. morning trade, the dollar was lower against the euro, with EUR/USD surging 0.85% to hit 1.3044.
The Institute for Supply Management said its index of purchasing managers rose by 1.2 points to 53.9 in December from 52.7 in November.
Analysts had expected the ISM PMI to ease up by 0.5 points to 53.2 in December.
The euro had been boosted earlier after data showing that the number of unemployed people in Germany fell more-than-expected in December, while the country’s jobless rate dropped to a record low.
The report came a day after data indicating a slowdown in the rate of contraction in the manufacturing sector in the euro zone.
But worries over sovereign debt issues in the euro zone lingered, with Italian 10-year bond yields hovering just below the critical 7% threshold, as investors looked ahead to bond auctions by Germany and France later in the week to gauge borrowing conditions in the region.
The greenback was also lower against the pound, with GBP/USD rising 0.61% to hit 1.5606.
A report earlier showed that manufacturing activity in the U.K. improved in December, but remained in contraction territory for the third consecutive month.
The greenback was lower against the yen and the Swiss franc, with USD/JPY sliding 0.15% to hit 76.77 and USD/CHF falling 0.70% to hit 0.9331.
In Switzerland, data showed that manufacturing activity increased more-than-expected in December, returning to expansionary territory after contracting in the three previous months.
In addition, the greenback was weaker against its Canadian, Australian and New Zealand cousins, with USD/CAD tumbling 0.99% to hit 1.0086, AUD/USD rallying 1.32% to hit 1.0369 and NZD/USD jumping 1.43% to hit 0.7895.
The Australian dollar was boosted after data showing that Chinese manufacturing activity expanded in December after contracting the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.63% to hit 79.77.
Later Tuesday, the U.S. Federal Reserve was to publish the minutes of its December policy-setting meeting.