Dollar Drops as Manufacturing Expands in USA & China

The US dollar dropped today as expanding manufacturing in the United States and China damped demand for the greenback as a safe haven. The dollar reached the lowest level in more than a month against the yen.

China’s Purchasing Managers’ Index increased from 49.0 to 50.3 in December, according to the report of the China Federation of Logistics and Purchasing on January 1. Analysts predict that the report of the Institute for Supply Management will show today an increase of PMI from 52.7 to 53.3 last month. The Stoxx Europe 600 Index rose 0.9 percent and the MSCI Asia Pacific Excluding Japan Index advanced 1.2 percent.

EUR/USD rose from 1.2933 to 1.3017 and USD/JPY dropped from 76.88 to 76.72 (the lowest rate since November 18) as of 10:36 GMT today.

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