The Swiss franc and the yen gained against their major counterparts as weaker data from the U.S. to China increases concern the global economic recovery is slowing, boosting demand for haven assets.
The franc reached a record against the dollar and the euro after manufacturing in the U.S. and China grew at the slowest pace in at least nine months. Currencies of commodity-exporting countries weakened as raw material prices dropped and stocks slumped, damping demand for higher-yielding assets. The dollar pared earlier losses linked to a private jobs report that showed slower-than-forecast employment gains in May.
“It’s a pretty nasty witch’s brew for risky assets,” said Richard Franulovich, a senior currency strategist at Westpac Banking Corp. in New York. The franc, the yen “will strengthen in times of stress.”
The franc rose 1.5 percent to 84.16 centimes per dollar at 1:30 p.m. in New York, reaching 83.83 centimes, the strongest since at least 1971. It added 1.6 percent versus the euro, touching 1.20855, the most on record. The yen gained 0.7 percent to 80.93 per dollar, from 81.52 yesterday.
The Institute for Supply Management’s factory index fell to 53.5 in May from 60.4 the prior month, the Tempe, Arizona-based group said today. Economists projected the gauge would drop to 57.1, according to the median forecast in a Bloomberg News survey. Estimates of the 83 economists polled ranged from 53 to 60.
China’s Purchasing Managers’ Index was at 52 from 52.9 in April, the lowest level since August, the China Federation of Logistics and Purchasing said in an e-mailed statement. The index has a seasonal pattern of falling in May, economists said before the release.
The Standard & Poor’s 500 Index dropped 1.4 percent, snapping a four-day advance, and the Thompson/Reuters CRB Index of raw materials fell 1.2 percent.
The franc reached a record against the dollar and the euro after manufacturing in the U.S. and China grew at the slowest pace in at least nine months. Currencies of commodity-exporting countries weakened as raw material prices dropped and stocks slumped, damping demand for higher-yielding assets. The dollar pared earlier losses linked to a private jobs report that showed slower-than-forecast employment gains in May.
“It’s a pretty nasty witch’s brew for risky assets,” said Richard Franulovich, a senior currency strategist at Westpac Banking Corp. in New York. The franc, the yen “will strengthen in times of stress.”
The franc rose 1.5 percent to 84.16 centimes per dollar at 1:30 p.m. in New York, reaching 83.83 centimes, the strongest since at least 1971. It added 1.6 percent versus the euro, touching 1.20855, the most on record. The yen gained 0.7 percent to 80.93 per dollar, from 81.52 yesterday.
The Institute for Supply Management’s factory index fell to 53.5 in May from 60.4 the prior month, the Tempe, Arizona-based group said today. Economists projected the gauge would drop to 57.1, according to the median forecast in a Bloomberg News survey. Estimates of the 83 economists polled ranged from 53 to 60.
China’s Purchasing Managers’ Index was at 52 from 52.9 in April, the lowest level since August, the China Federation of Logistics and Purchasing said in an e-mailed statement. The index has a seasonal pattern of falling in May, economists said before the release.
The Standard & Poor’s 500 Index dropped 1.4 percent, snapping a four-day advance, and the Thompson/Reuters CRB Index of raw materials fell 1.2 percent.
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