Dollar remained weakened at eight-month low against the
other major currency on Monday after data showed that U.S manufacturing
activity expanded at slower than expected rate and put question on strength of
the U.S economy.
The Institute for Supply Management said its index of
manufacturing activity fell to 50.8 last month from March’s 51.8. Analysts
had expected the factory index to tick down to 51.4.
USD/JPY up 0.22% to 106.68, off 18-month lows of 106.16
hit earlier in the day.
The yen remained broadly supported after the Bank of Japan
chose on last Thursday to hold its monetary policy, defying market expectations
for additional monetary easing.
The decision came a day after the Federal Reserve kept
interest rates on hold last week and indicated that any future interest rate
hikes would be data dependent.
EUR/USD rose
0.37% to a seven-month high of 1.1494.
Euro zone manufacturing purchasing managers’ index hit 51.7
in April, up from 51.5 the previous month and beating expectations for an
unchanged reading.
Dollar have broken its support of 92.60 ,trading at 92.35,
support at 91.50 and resistance at 94.00, if fall below 91.50 it can touch 90.00 mark else it can test its resistance level of 94.00.
More will update soon!!
