2021.08.2321:19:00UTC+00U.S. Dollar Drifts Lower Against Major Rivals

The U.S. dollar, which rose to an over 2-month high last week, came off that level on Monday as concerns about Fed taper faded a bit after data showed a slowdown in U.S. business activity in August.

According to preliminary estimate, the IHS Markit US Services PMI declined to 55.4 in August, falling for a third straight month, from 59.9 in July. Economists had expected the reading to come in at 58.3.

The IHS Markit US Manufacturing PMI fell to 61.2 in August from 63.4 in July, below market forecasts of 62.5. The IHS Markit US Services PMI dropped to 55.2 in August, falling for a third month, and from an all-time high of 70.4 in May.

Data from National Association of Realtors (NAR) said existing home sales in the US increased by 2% month-on-month to 5.99 million in July, beating forecasts for a rise to 5.83 million.

The dollar index slid to 92.95, down by about 0.6%.

Against the Euro, the dollar weakened to $1.1746, giving up nearly 0.4%. Eurozone private sector logged one of the strongest growth seen over the past two decades in August as the further reopening of the economy underpinned expansion in the services activity, flash survey results from IHS Markit showed.

The flash composite output index declined to 59.5 from a 15-year high of 60.2 in the previous month. The reading was forecast to fall marginally to 59.7.

The Pound Sterling strengthened against the dollar, climbing to $1.3724, more than 0.7% up from Friday's close. The UK private sector growth eased sharply in August largely due to staff shortages and supply chain issues, flash survey results from IHS Markit and the Chartered Institute of Procurement & Supply showed.

The flash composite output index decreased to a six-month low of 55.3 in August from 59.2 in July. The score was forecast to drop to 58.4.

Against the Japanese currency, the dollar eased to 109.69 yen from 109.79.

Against the Aussie, the dollar weakened to 0.7213 from 0.7132.

The Swiss franc firmed to 0.9124 against the dollar. The Loonie strengthened to 1.2648 a dollar as crude oil prices climbed sharply.