© Reuters. FILE PHOTO: A woman counts a Japanese 10,000 yen banknote in Tokyo, in an illustrative photo on February 28, 2013. Photograph: Shuhei Miyano/Reuters
Written by Herbert Lash and Joyce Alves
NEW YORK/LONDON (Reuters) – The dollar was little changed on Monday against a basket of major trading currencies and rose against the intervention-watched yen after Japan’s finance minister warned last week of excessive moves in the currency market.
The dollar initially weakened on news that US manufacturing fell further in June to levels last seen when the economy was reeling from the initial wave of the COVID-19 pandemic.
The Institute for Supply Management (ISM) said its manufacturing PMI fell to 46.0 from 46.9 in May, the lowest reading since May 2020. It was the eighth consecutive month that the PMI was below the 50 threshold indicating contraction.
“The key in ISM is the prices paid, which have been much weaker than expected,” said Mark Chandler, senior market analyst at Bannockburn Global Forex in New York. “The ISM saw the dollar paring its earlier gains,” he said.
The yield on the two-year rate-sensitive Treasuries fell on the news, before later heading higher, as did the dollar.
The ISM survey’s measure of prices paid by manufacturers fell to 41.8 in June from 44.2 the previous month as supply chain bottlenecks eased and higher borrowing costs dampened demand.
The measure of the greenback rose against six other currencies by 0.068%.
The yen fell to an eight-month low against the dollar as intervention loomed after Finance Minister Shunichi Suzuki warned on Friday that investors were selling the yen too far as it pulled back from the 145 threshold for the dollar.
Japan bought the yen in September, its first foray into the market to boost its currency since 1998, after the Bank of Japan’s (BOJ) decision to maintain a very loose policy sent the yen down to 145 against the dollar.
He intervened again in October after the yen fell to a 32-year low of 151.94.
The Japanese yen fell 0.17% against the dollar, to 144.59 per dollar.
The euro rebounded after weakening earlier on data showing slowing factory activity in China and renewed euro-zone concerns about economic growth.
Worries of a slowdown in the global economy weighed on the euro, which started the third quarter down 0.1% at $1.0897, after rising for three consecutive quarters.
China’s factory activity growth slowed in June, a survey of the private sector showed on Monday, as sentiment slumped and hiring slumped as companies grew more concerned about sluggish market conditions.
Manufacturing activity in the eurozone contracted faster than initially thought in June, as continued policy tightening by the European Central Bank squeezed finances.
The euro last fell 0.05% to $1.0904.
Chinese stock prices fell slightly to 7.2419 after falling to an eight-month low against the dollar at the end of last week. (CNY/)
The coin bid prices at 11:33 AM (1533 GMT).
Description RIC Last US Close Pct Change YTD Pct High Bid Low Bid
previous change
a class
Dollar Index 103.0000 102.9500 +0.06% -0.473% +103.2700 +102.7400
EUR/USD 1.0906 USD 1.0909 -0.02% + 1.79% + 1.0934 USD + 1.0870 USD
USD/JPY 144.5800 144.3150 +0.20% +10.29% +144.9100 +144.0000
EUR/JPY 157.67 157.44 +0.15% +12.38% +157.9200 +157.2700
USD/CHF 0.8966 0.8951 +0.18% -3.03% +0.9003 +0.8942
GBP/USD $1.2675 $1.2692 -0.12% +4.82% + $1.2723 + $1.2660
USD/CAD 1.3243 1.3250 -0.06% -2.27% +1.3273 +1.3231
AUD/USD 0.6677 USD 0.6661 +0.32% -1.97% + 0.6692 USD + 0.6637 USD
EUR/CHF 0.9777 0.9767 +0.10% – 1.19% +0.9805 +0.9762
EUR/GBP 0.8605 0.8589 +0.19% -2.70% +0.8605 +0.8581
0.6151 NZD 0.6137 +0.28% -3.08% + 0.6170 NZD + 0.6125 NZD
dollars / dollars
Dollar / Norway 10.6930 10.7420 -0.34% +9.09% +10.7620 +10.6890
Euro/Norway 11.6680 11.7163 -0.41% +11.19% +11.7351 +11.6656
Dollar / Sweden 10.8441 10.7780 +0.59% +4.19% +10.8737 +10.7701
Euro / Sweden 11.8271 11.7576 +0.59% +6.08% +11.8411 +11.7573