Dollar Rebounds as Manufacturing Data Surges to Four-Year High

The U.S. dollar index (DXY00) experienced a near-complete recovery after falling to a 7-week low on Monday due to stronger-than-expected American manufacturing data.

The July ISM manufacturing index surged to 55.6, exceeding analyst expectations of 53.9 and marking the fastest pace of expansion in four years.

Early dollar weakness was driven by easing geopolitical tensions in the Middle East, which boosted equity markets and reduced safe-haven demand for the greenback.