Dollar Rising After US Data, But Posting Biggest Monthly Decline Since December

The dollar rose on Friday (April 30th), extending its gains after optimistic data on the income and spending of US consumers and the manufacturing sector in the Midwestern states.

However, the dollar index ends April down 2.1, its biggest loss in one month since December.

US data next week, including the latest monthly numbers for jobs outside the US agricultural sector, is expected to boost expectations for the world’s largest economy to recover from the pandemic.

Today’s data showed a 4.2% recovery in US consumer spending in March, amid a 21.1% jump in income, with families receiving additional financial assistance from the government to ease the repercussions, which gave support to the dollar.

The green currency received further support after the Chicago PMI jumped to the highest level in nearly four decades.

In the last session, the dollar rose 0.7% to 91.279, the highest one-day increase since late February.

It ends the week up 0.5%.

The euro fell 0.8% against the US currency to $1.2018, its biggest one-day drop in terms of percentage since late February.

But it is ending the month with a gain of 2.5%, its best monthly performance since July 2020.

The dollar rose 0.36% against the Japanese currency to 109.30 yen, recording a 1% gain over the course of the week, but it ended the month down 1.3% in its worst monthly performance since July 2020.