Dollar was trending downwards in Asia on Thursday morning, reversing some earlier gains. The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched down 0.07% to 92.773 by 10:12 PM ET (3:12 GMT).
Dollar witnessed its first back-to-back daily gains since June earlier this year. Euro had rallied ever since European Union agreed for a rescue package for its members to fight the coronavirus pandemic. European Central Bank’s chief economist told media that the euro-dollar rate matters for monetary policy.
Investors had a different take with Ray Attrill, head of FX strategy telling media that Lane’s comments were an excuse for some traders to book profits.
Meanwhile China and Japan released their purchasing managers index (PMI) figures earlier in the day with both the Asian nations recording marginal dips in their PMIs. August PMI for Japan stood at 45, marginally below its July figure of 45.4 and China having a PMI of 54 in August as against 54.1 it had in July.
Investors are awaiting more PMI figures from Europe and Asia alongside US payroll figures later in the day.
