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U.S. Dollar Shows Notable Advance Versus The Euro

The U.S. dollar has shown a notable advance during trading on Friday, with the U.S. dollar index climbing by 0.5 percent.

The greenback has seen a particularly strong upward move against the euro and is currently valued at $1.1797 compared to yesterday’s $1.1860.

The U.S. dollar is also trading at 105.84 yen versus the 105.80 yen it fetched at the close of New York trading on Thursday.

The advance versus the euro came as the latest data showed Europe’s economic recovery slowed in August.

The euro area private sector grew at a slower pace in August following a rebound from the downturn caused by the coronavirus pandemic, flash survey data from IHS Markit showed.

The composite output index unexpectedly fell to 51.6 in August, while the score was expected to remain unchanged at 54.9.

The recovery was undermined by signs of rising coronavirus cases in various parts of the euro area, with renewed restrictions impacting the service sector in particular.

At the same time, IHS Markit released a report showing U.S. business activity expanded at the fastest pace in over a year in the month of August.

The IHS Markit flash composite index of purchasing managers at manufacturers and service providers climbed to an eighteen-month high of 54.7 in August from 50.3 in July.

The increase by the index came as the IHS Markit reading on manufacturing activity reached a nineteen-month high, while the reading on service sector activity indicated growth for the first time since January.

A separate report from the National Association of Realtors also showed existing home sales in the U.S. continued to soar in the month of July.

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