Dollar rally falters despite good economy news

Story link: Dollar rally falters despite good economy news

The US dollar fell again on Monday against the euro, sterling, and the yen. Its decline came despite the strongest report on US manufacturing this year.

Analysts are coming to the conclusion based on performance like this that the dollar’s rally has come to an end for the time being.

Some analysts see global political events as part of the problem. These political factors include Iran’s move to restart its program of working with uranium and Russia’s decision to measure the rouble against an 0.35 euro and an 0.65 dollar instead of using 0.3 and 0.7 levels.

The dollar was down 0.6 percent to $1.2192 against the euro. It fell 0.8 percent to $1.7694 in relation to sterling, and declined 0.4 percent to ¥112.14 against the yen.

Despite being stronger in relation to the dollar, the yen was down as well on Monday against both sterling and the euro.

The Japanese currency lost 0.3 percent to ¥198.35 in relation to sterling and declined 0.2 percent to ¥136.73 against the euro.

In China, the renminbi was slightly higher in relation to the dollar, to Rmb8.1046. It had closed Friday at Rmb8.1056.

Some analysts see the slight strengthening of the renminbi more as a sign of the dollar’s fall than as a willingness by the People’s Bank of China to allow the renminbi to appreciate in value.