Forex News: U.S. Dollar Climbs Amid Strong ISM Manufacturing PMI

U.S. Dollar Climbs Amid Strong ISM Manufacturing PMI

(RTTNews) - The U.S. dollar was higher against its major counterparts in the New York session on Monday, as U.S. manufacturing sector expanded in March for the first time since September 2022.

Data from the Institute for Supply Management showed that the manufacturing PMI jumped to 50.3 in March from 47.8 in February, with a reading above 50 indicating growth in the sector. Economists had expected the index to inch up to 48.4.

Last week's U.S. inflation data increased the likelihood of an interest rate cut at the Fed's June meeting.

The data is "along the lines of what we would like to see," Fed Chair Jerome Powell said on Friday at a conference and repeated the central bank is no hurry to cut interest rates. He also acknowledged the risks of leaving interest rates where they are now.

Treasury yields rose, with the yield on the benchmark ten-year note touching 4.31 percent.

The greenback firmed to a 5-day high of 151.77 against the yen and a 4-day high of 0.9055 against the franc, off its early lows of 151.22 and 0.9004, respectively. The next possible resistance for the currency is seen around 153.00 against the yen and 0.92 against the franc.

The greenback strengthened to 1-1/2-month highs of 1.0739 against the euro and 1.2554 against the pound, from its early lows of 1.0798 and 1.2641, respectively. The greenback is likely to find resistance around 1.03 against the euro and 1.21 against the pound.

The greenback appreciated to 4-day highs of 0.6486 against the aussie and 1.3585 against the loonie, from an early 4-day low of 0.6538 and near a 2-week low of 1.3514, respectively. The greenback is seen finding resistance around 0.63 against the aussie and 1.37 against the loonie.

The greenback touched a 4-1/2-month high of 0.5944 against the kiwi, from an early 4-day low of 0.5993. If the currency rises further, it may find resistance around the 0.58 level.

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