The dollar climbed Monday, on data showing manufacturing activity expanded in January for the first time in six months, while a slump in the pound also boosted the greenback amid fears the U.K and European Union could clash on trade.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.42% to 97.62.
The ISM manufacturing index for January showed an uptick to 50.9, beating expectations of 48.5. A reading above 50 in the ISM index indicates an expansion in manufacturing, which accounts for about 12% of the U.S. economy.
Still, many expect that the turnaround in manufacturing is unlikely to be repeated.
The weaker data did little to knock the dollar's advance thanks to a sharp decline in the pound.
GBP/USD fell 1.56% to $1.2994 as the U.K. and EU expressed opposing views on a future relationship, raising fears Britain risks leaving the economic bloc at the end of the transition period, Dec. 31, without a deal.
Source : Investing.com