Investing.com - The dollar dipped against a basket of the other major currencies on Monday after data showing that growth in the U.S. manufacturing sector slowed last month.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, edged down to 100.36 by 10.50 ET.
U.S. economic reports indicated that manufacturing growth slowed slightly in March, but construction spending rose to an almost eleven year high last month.
The Institute for Supply Management said its index of manufacturing activity fell to 57.2 last month from February’s reading of 57.7.
At the same time the Commerce Department reported that construction spending increased 0.8% to $1.19 trillion last month, the most April 2006.
In a separate report, financial data company Markit said its U.S. manufacturing index ticked down to 53.3 from 54.2 in February.
The data reinforced the view that the economy is growing at a solid but not rapid rate, suggesting that the Federal Reserve is likely to stick to a gradual pace of rate hikes.
The dollar index ended the first quarter down almost 3% amid growing doubts over whether the Trump administration's economic proposals would boost the U.S. economy and allow the Fed to tighten policy more aggressively.
Higher rates typically support the dollar by making U.S. assets more attractive to yield-seeking investors.
The dollar fell to the days lows against the yen, with USD/JPY falling 0.42% to 110.95.
The Bank of Japan's closely watched "tankan" survey showed early Monday that business sentiment among large Japanese manufacturers rose to a one-and-a-half year high in March, signaling that the economic recovery is broadening.
The euro was little changed, with EUR/USD at 1.0654, close to Friday’s more than two-week lows of 1.0650.
The euro remained on the back foot as investors unwound expectations that the European Central Bank is moving closer to tightening monetary policy.
Sterling was lower, with GBP/USD down 0.57% to 1.2478 after data showing that growth in the UK’s manufacturing sector slowed last month as rising inflation hit consumer demand.