Dollar Strengthens on Positive U.S. Manufacturing Data

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The dollar gained against rival trade-weighted currencies on Wednesday, as positive outlook over the U.S. economy continued to make the American currency very attractive to investors.

USD/JPY inched up 0.29% to trade at 114.35.

The greenback remained strong after data released on Tuesday revealed that the Institute for Supply Management’s manufacturing index had better than expected figures in February.

The rise in U.S construction spending in January also helped improve investors’ appetite for risk, as it indicated that the American economy was on a path of recovery following a slowdown in the fourth quarter.

EUR/USD remained virtually unchanged at 1.0860.

The euro remained vulnerable after weak inflation and disappointing factory data in the euro zone bolstered expectations for additional easing measures by the European Central Bank (ECB) in the near future. The ECB is scheduled to meet on the 10th of this month.

Against the British currency, the dollar held steady with GBP/USD trading at 1.3947. Against the Swiss franc, the greenback was little changed, barely rising 0.08% to trade at 0.9983.

Meanwhile, the American currency was lower against its Australian rival, with AUD/USD tacking on 0.47%  to trade at 0.7208.

The Aussie currency went up after the country’s Bureau of Statistics said that GDP grew by 0.6% in the fourth quarter, handily beating expectations of a 0.4% growth.

USD/CAD climbed 0.42% to 1.3463, while NZD/USD inched 0.47% lower at 0.6596.

The U.S. dollar index tacked on 0.13% rising to 98.48, narrowly missing the previous session’s one-month peak of 98.59.

Jacob Maslow is a native New Yorker with  five children. He left his payroll manager position after finding that his true passion was in writing, and has never looked back.

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