Forex- Dollar Continues Its Downward Spiral

The U.S. dollar continued to fall on Tuesday.

Investing.com – The dollar remained weaker on the first trading day of the year on Tuesday as the euro rose to its highest level in four months.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.41% to 91.61 by 11:40 AM ET (16:40 GMT), the weakest level since September 22.

The dollar was pressured lower by the euro, with climbing 0.35% to 1.2048, the highest level since September 8.

The euro zone manufacturing sector ended 2017 by ramping up activity at the fastest pace in more than two decades, according to data released on Tuesday and rising demand indicated that it will start the new year on a high.

The final reading of the euro zone jumped to 60.6 in December, the highest level since the survey began from 60.1 in November.

The dollar weakened in 2017 as the global economy gained momentum fueling expectations for tighter monetary policy in other countries, which would lessen the divergence between the Federal Reserve and other central banks.

Meanwhile on Tuesday, the market research group IHS Markit said that the U.S. (PMI), rose to to 55.1 in December, from the prior reading of 55.0. It was the highest reading since March 2015.

The dollar extended losses against the yen, with falling 0.42% to a low of 112.19.

Sterling rose to three-month highs against the dollar, with advancing 0.61% to 1.3586 after data showing that the UK manufacturing sector expanded strongly at the end of last year, although at a slower pace than before.

The fell to 56.3 in December from November’s 51-month high of 58.2. Output, new orders and employment all rose at solid rates, the report said.

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