2023.06.0520:46:00UTC+00Dollar Retreats After Service Sector Data

After staying firm during the Asian and European sessions, the U.S. dollar drifted lower against its major rivals in the New York session on Monday, after a report showed a slowdown in the pace of the nation's service sector growth in May.

Survey data from the Institute for Supply Management showed that services PMI fell to 50.3 in May from 51.9 in April. Economists had expected the index to edge down to 51.5.

A separate report released by the Commerce Department showed new orders for U.S. manufactured goods increased by slightly less than expected in the month of April.

The report said factory orders rose by 0.4% in April after climbing by a downwardly revised 0.6% in March. Economists had expected factory orders to climb by 0.5% compared to the 0.9% advance originally reported for the previous month.

Traders also awaited the Federal Reserve's monetary policy announcement, due next week. The Fed is widely expected to hold the rate at 5 - 5.25%.

The dollar index, which rose to a high of 104.40, dropped to 103.93 around noon, and was last seen at 104.02, the previous closing level.

Against the Euro, the dollar is roughly flat at 1.0713 after having firmed to 1.0675 earlier.

The dollar is up against Pound Sterling at 1.2432, despite retreating from 1.2369. Against the Japanese currency, the dollar is weak at 139.53 yen, about 0.3% down from the previous close.

The dollar is weak against the Aussie at 0.6615, and against Swiss franc, is down at CHF 0.9060, easing from CHF 0.9090. Against the Loonie, the dollar has firmed to C$ 1.3445.