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Monday, January 6, 2014

The dollar weakened after the December PMI figures disappoint



The dollar weakened after the December PMI figures disappoint


The dollar fell against the euro on Monday (Tuesday morning GMT ) , after the service sector survey data showed the U.S. economy slowed in the last month .

At 22:00 GMT ( Tuesday at 5:00 pm ) the euro was at 1.3629 dollars , compared with 1.3586 dollars late on Friday ( 4/1 ) , AFP reported .

The dollar also fell to 104.19 yen from 104.85 yen , while the euro slipped to 142.02 yen from 142.44 yen .

Purchasing managers' index ( PMI ) for the service sector U.S. ISM fell to 53.0 in December from 53.9 in November , the slowest pace of growth during 2013. Index was 55.2 in January 2013 . A number above 50 indicates expansion .

Slowdown , mainly characterized by a contraction in order , parallel with the slowdown in the manufacturing sector in December , underlining the view that the year 2013 ended somewhat diminished .

" Over the last few months the market has become accustomed to the U.S. data marvelous performance by beating the previous figures and estimates , but the one downfall is that a positive outlook can begin to exceed the expectations of timeliness , " said Neal Gilbert , currency specialist at GFT .

But Gilbert said the greenback would still be influenced by what happens with the U.S. December jobs data to be released on Friday ( 10/1 ) , which has become an important figure to the Federal Reserve's stimulus policies .

" If the employment data this week may continue to show positive trends , the U.S. dollar may be able to find an easier footing , " he said .

While the British pound slipped slightly against the dollar , 1.6402 dollars from 1.6413 into dollars . The dollar fell to 0.9038 Swiss francs from 0.9054 francs .

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