#606 – Dollar Rises After Manufacturing ReportPosted on
Good manufacturing news has a trickle-down effect of other aspects of the U.S. economy as this Wall Street Journal report outlines. Hopefully the good news continues as we cycle through the election and into the new year!
Dollar Rises After Manufacturing Report
Wall Street Journal, October 24, 2016
The dollar ticked higher Monday (Oct. 24, 2016) after an upbeat report on the U.S. manufacturing sector.
The WSJ Dollar Index, which measures the U.S. currency against 16 others, was up 0.1% to 88.65. The dollar rose against the Japanese yen but remained weaker against many emerging-market currencies.
The dollar has rallied in recent weeks as investors have grown more optimistic that the Federal Reserve will raise interest rates this year. Higher rates tend to boost the dollar by making the currency more attractive to yield-seeking investors.
The dollar was boosted Monday by a report signaling that growth in the U.S. manufacturing sector rebounded in October. IHS Markit’s manufacturing index climbed to 53.2 in October from 51.5 in September as new order growth hit a one-year high.