Dollar Rises On Strong Economic Data, Posts Strong Gains Against Major Rivals
(RTTNews) - The U.S. dollar climbed higher against its major counterparts on Monday after data showing an unexpected pickup in U.S. services sector activity in the month of November raised the possibility of more aggressive rate hikes by the Federal Reserve.
Already, Friday's data showing a stronger-than-expected growth in U.S. non-farm payrolls in the month of November had triggered speculation the central bank will continue with its aggressive rate hike path.
A report from the Institute for Supply Management this morning showed U.S. service sector activity unexpectedly grew at an accelerated rate in the in the month of November.
The ISM said its services PMI climbed to 56.5 in November from 54.4 in October, with a reading above 50 indicating growth in the sector. The increase surprised economists, who had expected the index to dip to 53.1.
A separate report released by the Commerce Department showed new orders for U.S. manufactured goods jumped by more than expected in the month of October.
The dollar index surged to 105.40, gaining more than 0.8% from the previous close.
Against the Euro, the dollar firmed to 1.0491 from 1.0543.
The dollar is trading at 1.2184 against Pound Sterling, strengthening from 1.2294.
Against the Japanese currency, the dollar is stronger, fetching 136.79 yen a unit, as against Friday's close of 134.31 yen.
Against the Aussie, the dollar is firm at 0.6694. The Swiss franc is weak against the dollar at CHF 0.9432, easing from CHF 0.9369.
The dollar is firm against the Loonie, fetching C$1.3599 a unit, compared with C$1.3473 on Friday.
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