It had been a while since the trading value of the greenback had been moving higher against the EUR. The trading value of the USD had hit a two-decade high for the first time against the euro.
USD Price Edged
Unfortunately, the bullish trend for the USD ended as its value started falling lower against the EUR.
According to the price graph, the value of the USD experienced a dip against the EUR in Tuesday’s trading session.
Weak Private Sector Activity
The reason behind the dip in the trading value of the USD versus the EUR is the below expectation results from the private sector activity in the United States.
The data that came out for the US private sector activity was lower than the expected data for the month of August.
It proved as an indication of the laid-back approach of the Federal Reserve toward interest rate hikes.
According to the investors and economists, the weaker data means that the Federal Reserve has not been showing as strong aggression as they claimed they would adopt with interest rates.
The Feds had speculated that they would increase the interest rates with aggression. However, now it seems that the interest rates have not increased as much as expected from them.
Performance of Dollar versus Basket Currencies
The index for the United States dollar shows that the value of the dollar is currently at 108.58. This means that the value of the USD has dipped 0.376% in the latest trading session.
In the earlier trading sessions, the value of the USD had grown significantly higher versus the rest of the currencies. The value of the USD rose to 109.27 against the basket currencies.
Hitting the 109.27 level was the strongest benchmark that the USD had hit in the past 2-decades.
The purchasing managers index (PMI) for the S&P Global flash composite recorded in the month of August is the lowest that has been recorded since May of 2020.
The PMI recorded a dip as the demand for the manufacturing and services sectors kept shrinking. This was the second-straight month that the PMI has continued shrinking to the lowest level.
It is due to the tighter financial conditions as well as high inflation rates that the particular index has been facing a downtrend.
Performance of EUR versus the USD
The value of the euro versus the dollar has surged by 0.19%. The value of the greenback is now at $0.99625. Finally, the price of the EUR has risen to this level against the USD after witnessing a low value of $0.99005.
Despite the recent jump, the value of the EUR has been falling at a faster level against the USD. From the beginning of the year until now, the value of the EUR has fallen by 12% versus the dollar.