[1/2]Representations of cryptocurrency Bitcoin and U.S. dollar are seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration Acquire Licensing Rights
NEW YORK, Oct 24 (Reuters) – The dollar rose against a basket of currencies on Tuesday as a slew of fresh economic data highlighted the strength of the U.S. economy relative to the United Kingdom and the European Union.
U.S. business output ticked higher in October as the manufacturing sector pulled out of a five-month contraction on a pickup in new orders, and services activity accelerated modestly amid signs of easing inflationary pressures, S&P Global said on Tuesday.
It was the latest sign the U.S. economy is withstanding the surge in interest rates, spurred by the Federal Reserve’s campaign to beat back inflation.
The dollar index , which measures the currency’s strength against a basket of six rivals, was 0.6% higher at 106.27. The index had slipped to a one-month low of 105.35 earlier in the session.
“The big picture still clearly remains intact, especially when you compare U.S. PMI to the concurrent releases out of the UK and the euro zone this morning,” said Helen Given, FX trader at Monex USA.
“While all three PMI readings for the U.S. (manufacturing, services, and composite) were positive, both the UK and the euro zone showed contractions, re-emphasizing the continuing resilience of the larger U.S. economy in comparison to its peers around the world.”
Earlier on Tuesday, survey data showed euro zone…
