U.S. dollar rises on manufacturing data and Fed rhetoric

The U.S. dollar strengthened at the start of the new trading week, supported by upbeat economic data as the currency attempted to recover some of last week’s losses.

The Dollar Index, which measures the greenback against a basket of major currencies, climbed about 0.3%, buoyed by strong manufacturing figures out of New York. The November Empire State Manufacturing Survey showed business conditions rising well above market expectations, reaching their highest level in a year.

The index advanced by eight points to 18.7, compared with forecasts for a decline to 5.8. This surprise reading reinforced confidence in the resilience of the U.S. economy and boosted the dollar’s appeal in global markets.

The currency also drew support from recent remarks by several Federal Reserve officials, who signaled a preference for keeping interest rates steady. Their comments reduced the probability of a rate cut at the Fed’s December meeting to 41%, down from 70% earlier this month.

Together, the stronger‑than‑expected data and the Fed’s cautious stance highlight the dollar’s resilience against earlier expectations. They also underscore growing market caution over the likelihood of near‑term rate cuts, particularly as fresh indicators continue to point to underlying strength in the U.S. economy.