Dollar Hits Yearly Highs on Strong PMI Report
The U.S. Dollar Index has reached its yearly highs after a strong performance in recent days. The rally was driven by the release of the ISM Manufacturing PMI report, which showed that manufacturing activity expanded for the ninth consecutive month.
The report indicated that the New Orders Index expanded at 55.3 percent, up 1.6 percentage points from August's figure of 53.7 percent. The Prices Index also remained in expansion territory, registering 77.9 percent, a notable increase of 6.8 percentage points compared to August's reading.
The Initial Jobless Claims report showed that 197,000 Americans filed for unemployment benefits in a week, which was lower than the analyst consensus of 200,000. This data suggested that the U.S. economy remained strong and supported the rally in the dollar.