The dollar is plunging after the most important sector of the US economy – the services sector – grew at its slowest pace in 6 years.
The US dollar index is down by 0.9% at 95.00 as of 12:07 p.m. ET.
Earlier, the Institute of Supply Management reported the monthly non-manufacturing purchasing manager’s index on the service sector fell to 51.4 for August, down from 55.5 in July, and below expectations of a slight dip to 55.
That’s the lowest reading since February 2010 – back when the index climbed out of contractionary territory for good following the Great Recession. But the index is still above 50, indicating that the service sector remains in expansion.
As for the rest of the world, here’s the scoreboard as of 12:11 p.m. ET.
- The Australian dollar up by 1.3% at .7678 against the US dollar. Earlier on Tuesday, the Reserve Bank of Australia kept policy on hold at 1.50%, as expected. The Russian ruble is stronger by 0.8% at 64.5705 per dollar. On Monday, Russia and Saudi Arabia agreed to cooperate on stabilizing the oil market – a move that might be more than meets the eye. The euro is up 0.8% at 1.1239 against the dollar. Earlier, data showed that the euro area’s second quarter GDP grew at 0.3%, down from the first quarter’s 0.5%. The British pound is stronger by 1.0% at 1.3431 against the dollar. The Japanese yen is stronger by 1.1% at 102.28 per dollar.