U.S. Dollar Higher as Data Boosts Sentiment

The dollar hovered at its highest in over three months against a basket of major currencies early on Tuesday, having risen on the back of upbeat U.S. data and with the euro still in the doldrums.

Trading was choppy overnight reflecting some confusion after the U.S. Institute for Supply Management corrected its manufacturing activity index for May to 55.4, from a below-consensus reading of 53.2. The ISM said it had to make the correction due to an error in applying the seasonal adjustments.

Benchmark U.S. Treasury yields drifted back up as a result, helping boost the allure of the dollar. The dollar index climbed as far as 80.681, a high not seen since mid-February.


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