US dollar slightly stronger on manufacturing survey

The US dollar strengthened in relation to yen and the euro on Wednesday after Tuesday’s news that the ISM survey of US manufacturing was unexpected higher in April. Despite the gain, some analysts counseled waiting for another month of results before expecting a long-term rally. Early gains for the dollar, however, were limited by a report of slower than anticipated growth in private sector unemployment in the US. By the middle of the afternoon in New York, the greenback had gained 0.1 percent on the euro to $1.3595, while it was up 0.3 percent to ¥120.10 versus the yen.

Sterling lost value on new figures showing that mortgage approvals in the UK were not up to predictions. Analysts said that despite this evidence that recent interest rate hikes were beginning to cool the housing market, the Bank of England is still likely to raise interest rates next week. The UK currency dropped 0.3 percent in relation to the euro, to £0.6830, while it dropped 0.4 percent versus the US dollar to $1.9900.

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