The dollar rose against the euro and
yen in New York after manufacturing in the northeastern U.S.
expanded more than forecast this month, easing concern among some
investors that the economy is slowing, Bloomberg News reports.
Reports on Philadelphia-area and New York state
manufacturing kept intact expectations that the Federal Reserve
will raise its interest-rate target for overnight bank loans from
1.25 percent at its meeting next month. U.S. Treasuries fell
after the reports were released, sending yields higher, Bloomberg reports.
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“It’s the first sign that the demise of the U.S. economy
has been overstated — the market had gotten overly pessimistic
in the past two weeks,” Greg Anderson, senior currency
strategist at ABN Amro Holding NV in Chicago told Bloomberg.
Two weeks ago, a government report showed that manufacturers
lost 11,000 jobs in June, the first decline since January.
Economists in a Bloomberg News survey said the economy will grow
4.1 percent in the second quarter, down from their previous
estimate of 4.5 percent.
A separate report by the Labor Department showed that prices paid by U.S.
factories, farmers and other suppliers, fell 0.3 percent in June
after rising 0.8 percent in the prior month – the biggest decline in more than a year.
Economists predicted a 0.2 percent rise. Less food and energy,
producer prices rose 0.2 percent, in line with economists’
forecasts.
Bloomberg News
