Dollar Hits One-Month High Against Rival Currencies

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By Jacob Maslow

The dollar stood at a 30-day high against major rivals on Tuesday, as optimism over the outlook of the U.S. economy continued to lend support for the greenback.

USD/JPY tacked on 0.47% to trade at 113.20.

The Japanese currency gained earlier after data revealed that China’s manufacturing sector declined for the 7th consecutive month in February.

The official manufacturing purchasing managers’ index dropped to 49.0 from January’s 49.4, plummeting further away from the 50 threshold that separates growth from decline. Economists projected the index to drop to 49.3.

The Caixin manufacturing PMI was also down, dropping to 48.0, from 48.4 in January, falling below market expectations of 48.3.

EUR/USD declined 0.18% to trade 1.0857.

Sentiment on the euro remained weak after data showed that the euro zone fell back into deflation in February, bolstering expectations of additional measures by the European Central Bank (ECB). The ECB is slated to meet on March 10th.

The dollar edged lower against the sterling, with GBP/USD rising 0.50% to 1.3985. Conversely, the American currency was stronger against the Swiss franc, with USD/CHF inching up 0.18% to 1.0003.

Meanwhile, the Australian and New Zealand dollars were higher against their American rival, with AUD/USD inching up 0.14% at 0.7152 and the NZD/USD tacking on 0.21% to 0.6604.

USD/CAD dropped 0.22% to 1.3512.

The U.S. dollar index, which tracks the currency’s standing vis-à-vis six rival major currencies, was steady at 98.35.

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