After seeing some strength earlier this morning, the value of the U.S. dollar came under pressure over the course of trading on Monday.
The dollar is trading at 108.97 yen compared to the 109.49 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is valued at $1.1080 compared to last Friday’s $1.1018.
The value of the greenback moved to the downside came following the release of a report from the Institute for Supply Management showing a continued contraction in U.S. manufacturing activity in the month of November.
The ISM said its purchasing managers index edged down to 48.1 in November from 48.3 in October, with a reading below 50 indicating a contraction in manufacturing activity. Economists had expected the index to inch up to 49.2.
“November was the fourth consecutive month of PMI contraction, at a faster rate compared to the prior month,” said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee. “Global trade remains the most significant cross-industry issue.”
A separate report released by the Commerce Department showed an unexpected decrease in U.S. construction spending in the month of October.
The disappointing U.S. economic news offset earlier positive sentiment generated by some upbeat Chinese manufacturing data.