BRUSSELS (dpa-AFX) - The US dollar weakened against its key counterparts on Monday morning in New York following a report showed that the activity in the U.S. manufacturing sector expanded at a much slower than expected rate in March.
The Institute for Supply Management said its purchasing managers index fell to 51.3 in March from 54.2 in February, although a reading above 50 indicates continued growth in the manufacturing sector.
While the index pointed to the fourth consecutive month of growth in the manufacturing sector, economists had expected a much more modest decrease to a reading of 54.0.
The much bigger than expected decrease by the headline index reflected notable slowdowns in the pace of new orders and production growth.
The new orders index plunged to 51.4 in March from 57.8 in February, while the production index tumbled to 52.2 from 57.6.
The dollar fell broadly on the downbeat report and has resumed its Asian session sell-offs.
The US currency hit a 1-week low of 1.5244 against the pound immediately following the data, shedding by more than 0.4 percent from the day's high of 1.5180.
The dollar also dropped to multi-day lows of 1.2855 against the euro and 0.9474 against the Swiss franc after the report.
The greenback is heading to re-test Asian session's fresh 3-week low against the yen, falling as low as 93.38 around 10:00 am ET.
Meanwhile an official report from the Commerce Department showed that the U.S. construction spending rebounded by slightly more than expected in February.
The report said construction spending rose 1.2 percent to a seasonally adjusted annual rate of $885.1 billion in February from the revised January estimate of $874.8 billion. Economists had expected spending to increase by about 1.1 percent.
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