Positive economic reports strengthens US dollar

World
Europe

The US dollar strengthened against other major currencies on Monday, as investors were upbeat over a batch of positive economic reports.

US economic activity in the manufacturing sector expanded in September, and the overall economy grew for the 100th consecutive month, according to the latest report released by the Institute for Supply Management (ISM).

The manufacturing index, also known as the purchasing managers index (PMI), registered 60.8 in September, an increase of two percentage points from the August reading and beating market consensus of 58.0, said the ISM.

The US construction spending rebounded in August after two months of decline. The Commerce Department said on Monday that construction spending was at 1.22 trillion US dollars, 0.5 percent above the revised July estimate, and 2.5 percent above the August 2016 figure.

Meanwhile, the seasonally adjusted IHS Markit final US Manufacturing Purchasing Managers Index came in at 53.1 in September, up slightly on the flash reading of 53.0 and rising from 52.8 in August.

The dollar index, which measures the greenback against six major peers, increased by 0.49 percent at 93.531 in late trading.

Analysts said the data along with other strong employment reports further bolsters the odds of a December Federal Reserve interest rate increase, AFP reported.

"The hurricanes appear not to have made a material difference to activity at the national level, though the press release cites businesses in several sectors fretting about potential supply chain disruptions and higher prices," said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

Source(s): AFP ,Xinhua News Agency