NEW YORK (AFX) - The dollar traded mixed against the major currencies Monday after data showed manufacturing activity in June rose less than expected and construction spending dropped in May.
The euro bought $1.2798 in afternoon New York trading, up from $1.2787 in New York late Friday. The British pound dipped to $1.8416 from $1.8485.
The dollar rose against the Japanese currency to buy 114.68 yen, up from 114.38 in late Friday trading.
The Institute for Supply Management said the nation's manufacturing sector expanded in June, but at a slower pace than analysts expected. Its manufacturing index registered 53.8 in June, the slowest growth reading since the gauge registered 53.5 last August.
The Commerce Department also reported Monday that U.S. construction spending fell in May by the largest amount in nearly two years as the once booming housing sector suffered another big decline.
The markets are looking ahead to the European Central Bank's decision on interest rates on Thursday, which could put further pressure on the dollar.
'The risk is that Trichet puts 'vigilance' back on the table with an August rate hike a 50 percent call,' said Michael Woolfolk, a senior currency strategist at the Bank of New York.
The dollar gave back some of its recent gains after last week's Federal Reserve policy meeting. Although the central bank raised rates by another quarter point to 5.25 percent, the Fed's statement surprised the markets by hinting that it may soon curtail its campaign of rate hikes.
The Fed's 17 consecutive rate hikes since June 2004 have bolstered the dollar; higher rates bolster a currency by increasing the return on some investments.
In other trading, the dollar bought 1.2240 Swiss francs, up from 1.2233 late Friday, and 1.1111 Canadian dollars, down from 1.1155.
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