Euro rises against dollar
The euro firmed against the dollar in midafternoon trade, buoyed by a weaker-than-expected US ISM manufacturing index for August, dealers said.
At 3.15 pm the euro traded at $0.9942, having touched a high of $0.9952, compared with $0.9925 prior to the data.
"The dollar is coming under pressure following a much lower than expected US ISM manufacturing data," said the Ian Stannard, analyst at BNP Paribas.
Markets expected the ISM to show a reading of at least 51.1, following the unexpected rise in last week's Chicago PMI for August.
"The Chicago PMI last week may have been boosted by the recent buoyancy in the auto sector, and has not been translated into a strong ISM reading, as expected," said Stannard.
"The data continues to show that the US manufacturing sector is struggling to recover," he added.
The analyst is looking for a euro-dollar move to parity over the next couple of days.
The Institute for Supply Management (ISM) said its overall index of business activity was 50.5 in August, the same level as July.
A reading above 50 indicates an expansion in manufacturing activity. This is the tenth consecutive month the index has been above 50.
