Currencies: Dollar weakens as manufacturing gauge moves into contraction territory

The dollar turned lower Thursday against the euro and yen after a gauge of U.S. manufacturing activity signaled a contraction in August.

The Institute for Supply Management’s manufacturing index in August fell to 49.4%. from 52.6% in the previous month, below the consensus expectation for a 52% reading. Readings below 50% indicate contraction.

The ICE Dollar Index DXY, -0.30% a measure of the buck against a basket of six currencies, was down 0.1% at 95.8860 in recent trade.

Earlier, the dollar USDJPY, -0.21% briefly touched ¥103.85, its strongest level in more than a month, after a widely watched reading on weekly jobless claims showed the number of Americans who applied for unemployment benefits last week rose by just 2,000 to 263,000.

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