Dollar Pulls Back After Initial Gains

US dollar index is lower, and greenback is down against its counterparts, following earlier gains. After surging a bit earlier in the session, the US dollar is now losing ground, likely due in part to profit taking.

Date out of the United States continues to tell the tale of an economic recovery. The latest manufacturing data showed activity at a high not seen for more than three years. Additionally, construction spending data for July showed an increase. This news helped the US dollar gain ground early on.
Dollar gained especially against the yen, which dropped with help from the hint that the country’s investment portfolio could shake things up a bit, including more foreign currencies.
Greenback hasn’t remained on top, though. The surge in the dollar index has since turned around and the greenback is lower against its counterparts right now. The earlier gains might have been overdone, and there is also probably a bit of profit taking happening as well.
At 10:22 GMT the US dollar index is down to 82.8990 from the open at 82.9940. EUR/USD has moved up to 1.3145 from the open at 1.3133. GBP/USD is up to 1.6477 from the open at 1.6470. USD/JPY is down to 105.0635 from the open at 105.0915.

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