The U.S. dollar declined against other major currencies on Monday amid soft manufacturing data from the country and dovish remarks from the Federal Reserve Vice Chairman Stanley Fischer about the U.S. economy.
The Institute for Supply Management (ISM) reported on Monday that U.S. January purchasing managers' index (PMI) registered 48.2 percent, an increase of 0.2 percentage point from the seasonally adjusted December reading of 48 percent.
A reading above 50 indicates the sector is generally expanding, while a reading below that level indicates contraction. Fed's Fischer said on Monday that recent turbulence of global financial markets could harm the U.S. economic growth.
"If these developments lead to a persistent tightening of financial conditions, they could signal a slowing in the global economy that could affect growth and inflation in the United States," he said. Fischer's words raised concerns that the U.S. central bank may not raise interest rates as quickly as forecast this year.
The dollar index, which measures the greenback against six major peers, was down 0.65 percent to 98.961 in late trading. In late New York trading, the euro climbed to 1.0901 dollars from 1.0829 dollars of the previous session, and the British pound increased to 1.4438 dollars from 1.4239 dollars.
The Australian dollar went up to 0.7101 dollars from 0.7079 dollars. The dollar bought 121.09 Japanese yen, lower than 121.17 yen of the previous session. The dollar moved down to 1.0187 Swiss francs from 1.0238 Swiss francs, and it declined to 1.3934 Canadian dollars from 1.4001 Canadian dollars.
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