Dollar falls after disappointing economic data

The US dollar fell against its peers on Friday after the release of disappointing economic data, amid anticipation of the ongoing talks between the US Congress and the White House on the stimulus plan.

The US Treasury Secretary Janet Yellen said during her interview with CNBC yesterday that the US economy could return to growth and full employment in 2022 if President Joe Biden’s $1.9 trillion coronavirus relief package is passed Congress.

Yellen also said earlier this month that if Congress failed to pass the stimulus plan the reopening of the economy would be delayed to the end of 2021, which weighs down on the job market, production and economic activity.

Data showed today that the US manufacturing PMI slowed to 58.5 points in January, from 59.2 points in December, beating forecasts of a drop to 58.4.

The US services PMI rose to 58.9 points from 58.3 in December, beating forecasts of 57.9 points.

The dollar index fell against a basket of major currencies by 0.3% to 90.3 points as of 19:49 GMT, after hitting a high of 90.6 points and a low of 90.1 points.