Pound slide below $1.30 after disappointing PMI figure
The dollar moved firmly higher against other major currencies on Monday, rebounding from sharp losses posted last week as investors tried to catch up with the recent rise in U.S. Treasury yields.
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The ICE Dollar Index , which measures the greenback against a basket of six rival currencies, gained 0.4% to 96.030, setting in on track for its biggest one-day rise in two weeks, according to FactSet data.
The dollar index last week closed out the second quarter of the year with its biggest quarterly loss since September 2010, pressured by lingering concerns over President Donald Trump's pro-growth agenda. Hawkish comments from the heads of the European Central Bank and the Bank of England also yanked the dollar lower against the euro and pound last week.
See:Dollar bulls have a lot to worry about in second half of 2017 (http://www.marketwatch.com/story/dollar-bulls-have-a-lot-to-worry-about-in-second-half-of-2017-2017-06-29)
"The dollar has been under significant pressure in recent weeks dropping to nine month lows, but could this be about to turn around?," said Richard Perry, analyst at Hantec Markets, in a note.
"The dollar tends to be well correlated with moves on U.S. Treasury yields and it is interesting that Treasury yields once more seemingly turned a corner, but the dollar is yet to respond," he added.
The yield 10-year U.S. notes rose 1 basis point to 2.315% on Monday.
In other currencies on Monday, the pound slipped back below the $1.30 handle after the U.K. manufacturing purchasing managers index for June fell short of forecasts and dropped to a three-month low (http://www.marketwatch.com/story/uk-manufacturing-pmi-slows-to-3-month-low-2017-07-03). Sterling bought $1.2966, compared with $1.3024 late Friday in New York.
The euro also declined, fetching $1.1378 compared with Friday $1.1427.
(END) Dow Jones Newswires
July 03, 2017 06:39 ET (10:39 GMT)