The value of the U.S. dollar has moved modestly higher during trading on Tuesday, regaining ground following the pullback seen yesterday.
The U.S. dollar index is currently trading at 93.98, up 0.20 points or 0.2 percent.
The greenback is trading at 111.51 yen compared to the 110.93 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1595 compared to yesterday’s $1.1621.
The uptick by the dollar comes after the the Institute for Supply Management released a report showing activity in the U.S. service sector unexpectedly grew at a slightly faster pace in the month of September.
The ISM said its services PMI inched up to 61.9 in September from 61.7 in August, with a reading above 50 indicating growth in the service sector. Economists had expected the index to edge down to 60.0.
“The slight uptick in the rate of expansion in the month of September continued the current period of strong growth for the services sector,” said Anthony Nieves, Chair of the ISM Services Business Survey Committee.
He added, “However, ongoing challenges with labor resources, logistics, and materials are affecting the continuity of supply.”
A separate report released by the Commerce Department showed the U.S. trade deficit widened by much more than expected in the month of August.
The Commerce Department said the trade deficit widened to $73.3 billion from a revised $70.3 billion in July. Economists had expected the trade deficit to increase to $70.5 billion from the $70.1 billion originally reported for the previous month.
The wider trade deficit came as the value of imports jumped by 1.4 percent to $287.0 billion, while the value of exports rose by 0.5 percent to $213.7 billion.