Thursday saw the U.S. dollar advance in value against the majority of its rival currencies in response to less-than-strong purchasing managers' index readings for China and Europe, MarketWatch reports.
Thus far this month the Chinese PMI dropped to 48.1, which is lower than economists forecasted. The reading in February was 49.6. The Dollar Index, which measures the strength of the U.S. dollar versus six rival currencies, gained late on Wednesday. The greenback did not advance against the Japanese yen, one of the metric's six currencies.
"The reading suggests that manufacturing activity continued to slow in March. We have found a pretty high correlation between the PMI readings and industrial output growth 2-3 months down the line, which suggests weak industrial output [through] May or even June," Dariusz Kowalczyk, senior economist for Asian nations except for Japan with Credit Agricole, told MarketWatch.
The economic data about Chinese manufacturing pulled down the value of the U.S. dollar against the Australian and New Zealand monetary units early in Thursday's trading session.
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