US dollar slips after poor December PMI numbers

January 07, 2014 | 09:26

(0) user say

The US dollar fell against the euro Monday in the wake of survey data showing a sagging services sector in the US economy last month.

A man displays US dollar notes at a local currency exchange shop in Mumbai. (AFP/Punit Paranjpe)

NEW YORK: The US dollar fell against the euro Monday in the wake of survey data showing a sagging services sector in the US economy last month.

At 2200 GMT the euro was at US$1.3629, compared with US$1.3586 late Friday.

The dollar also fell to 104.19 yen from 104.85 yen, while the euro slipped to 142.02 yen from 142.44.

The ISM purchasing managers index for the US services sector fell to 53.0 from 53.9 in November, the slowest pace of growth during 2013. The index was at 55.2 in January 2013. A number above 50 denotes expansion.

The slowdown, marked especially by a contraction in orders, paralleled a December easing in the manufacturing sector, underscoring views that the year ended in somewhat of a lull.

"For the past few months the market has become accustomed to US data performing admirably by beating previous readings as well as expectations, but one of the downfalls of positive outlooks is that expectations can start to outpace actualities," said Neal Gilbert at forex specialist GFT.

But Gilbert said the greenback's path will still be influenced more by what happens with the December US jobs data to be released on Friday, numbers which have been key to the Federal Reserve's stimulus policy.

"If subsequent employment data this week can continue to show positive inclinations, the US dollar may be able to find footing more easily," he said.

The British pound meanwhile slipped slightly against the dollar, to US$1.6402 from US$1.6413. The dollar fell to 0.9038 Swiss franc from 0.9054 franc.

AFP

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional