Poor manufacturing sector results hits dollar

FINANCIAL markets had a mixed day yesterday as a survey showing weakness in the manufacturing sector in the US saw the euro/dollar ratio hit another four-year high by mid-afternoon.

The results of the Institute of Supply Management’s monthly survey of US manufacturing activity saw the euro climb over the $1.12 mark in the afternoon to hit $1.1260. On Thursday, the exchange between the two resulted in a further four-year high being archived.

Analysts think the gains may be lost next week. Jeremy Peat, group chief economist of Royal Bank of Scotland, says a rate of $1.10-$1.11 is a fair exchange given the inherent weakness in eurozone economies.