The U.S. dollar drifted lower against other major currencies on Monday, extending recent weakness, as a slew of encouraging economic data raised optimism about strong global economic rebound and dimmed the currency’s safe-haven appeal.
Stocks rose to record highs, contributing significantly to the weakened demand for the dollar.
The dollar index slid to 92.54, giving up more than 0.5% from previous close. It was last seen at 92.61.
Against the Euro, the dollar weakened to $1.1811, losing more than 0.4%.
The Pound Sterling was stronger, fetching $1.3906 a unit, over 0.5% more than previous close of $1.3832.
The Yen strengthened to 110.21 a dollar, firming up from 110.71.
Against the Aussie, the dollar is weaker at 0.7651, falling from 0.7610 a unit of the Australian currency.
The Swiss franc firmed up to 0.9363 from 0.9423, gaining more than 0.6%, while the Loonie was stronger at 1.2525, compared to 1.2578 on Thursday.
A report from the Labor Department last Friday showed Data from U.S. Labor Department on Friday showed employment in the U.S. spiked by much more than expected in the month of March. The data said non-farm payroll employment surged up by 916,000 jobs in March after climbing by an upwardly revised 468,000 jobs in February.
Economists had expected employment to jump by 647,000 jobs compared to the addition of 379,000 jobs originally reported for the previous month.
A report released by the Institute for Supply Management on Monday morning showed growth in U.S. service sector activity saw a substantial acceleration in the month of March.
The Institute for Supply Management’s report also showed the pace of growth in U.S. manufacturing activity accelerated by much more than anticipated in the month of March.
The ISM said its Manufacturing PMI jumped to 64.7 in March from 60.8 in February, with a reading above 50 indicating growth in manufacturing activity. Economists had expected the index to inch up to 61.3.
With the much bigger than expected increase, the Manufacturing PMI reached its highest level since hitting 69.9 in December of 1983.