2021.02.0121:03:00UTC+00Dollar Gains Against Other Major Currencies

The U.S. dollar was stronger against its peers on Monday with uncertainty about additional fiscal stimulus pushing the currency up north.

Concerns about the economic impact of the slow vaccine rollout and volatility in the stock markets too contributed to dollar's rise.

A report from the Institute for Supply Management showing the pace of growth in U.S. manufacturing activity slowed more than expected in January.

The ISM said its manufacturing PMI declined to 58.7 in January from a downwardly revised 60.5 in December. While a reading above 50 indicates continued growth in the manufacturing sector, economists had expected the index to show a more modest drop to 60.0.

The dollar index rose to 91.06, gaining about 0.53%

Against the Euro, the dollar firmed up to $1.2059, gaining 0.65%. The final manufacturing Purchasing Managers' Index dropped to 54.8 in January from 55.2 in December. The flash reading was 54.7.

However, the sector expanded for the seventh straight month and January's figure was amongst the highest seen over the past two-and-a-half years.

The Pound Sterling was weaker, fetching $1.3664 a unit, compared to $1.3710 on Friday. The UK manufacturing sector growth slowed in January. The IHS Markit/ Chartered Institute of Procurement & Supply Purchasing Managers' Index fell to a three-month low of 54.1 in January from December's three-year high of 57.5, data showed Monday. However, the reading was well above the flash 52.9.

The Yen weakened to 104.95 a dollar, sliding from 104.62 as Japan's manufacturing sector fell into contraction in January. The latest survey from Jibun Bank showed its PMI reading came in at 49.8. That's down from 50 in December, which was right on the line that separated expansion from contraction.

The Aussie eased by about 0.25% with the AUD-USD pair at 0.7624, as against 0.7644 Friday evening.

The Swiss franc slid to 0.8971 a dollar, giving up 0.76%. According to a report from the Federal Statistical Office, Switzerland's retail sales increased in December, rising by 4.7% year-on-year.

The loonie was weaker by about 0.6% against the dollar, at C$1.2853. Statistics Canada's data showed the IHS Markit Canada Manufacturing PMI fell to 54.4 in January of 2021, down sharply from 57.9 in December. The latest reading pointed to the seventh consecutive month of expansion in manufacturing activity although the pace of expansion was the softest since July.