The US Dollar Index, a measure of the greenback's strength against a basket of major currencies, was at 103.49 as of 7 a.m. (Vietnam time).
The euro fell 0.13% to 1.0934 against the dollar. The pound fell 0.08% to 1.2594 against the dollar. The dollar rose 0.11% to 149.63 against the Japanese yen.
The US dollar slipped against a basket of currencies late last week on news of solid US business activity in November, but private sector employment fell amid expectations of a fourth-quarter economic contraction, according to Investing.com.
Earlier, Michael Brown, market analyst at Trader X, commented that the USD trading range was extremely “quiet” after Thanksgiving with quite thin liquidity and low trading volume until S&P Global on Friday recorded the US Composite PMI Output Index.
The figure was unchanged at 50.7 this month as a slight increase in service sector activity offset a decline in manufacturing. A reading above 50 indicates expansion in the private sector. The lack of strong order growth led to businesses shedding workers, with the survey's employment index falling to 49.7 in the first decline since June 2020 from 51.3 in October.
A tightening labor market will aid the Fed’s fight against inflation. Economic data has produced more evidence of a cyclical downturn in the US, said Jane Foley, senior foreign exchange strategist at Rabobank.
The U.S. dollar index is on track for its weakest monthly performance in a year on growing expectations that the Federal Reserve will finish raising interest rates and could start cutting rates next year.
Source: Investing
