RTRS: Dollar falls vs euro as data increases risk tolerance
NEW YORK, June 1 (Reuters) - The dollar fell against the euro amid rising risk tolerance on Monday, as economic reports including one showing the U.S. manufacturing sector expanded slightly more than expected in May lifted optimism about a global recovery.
The Institute for Supply Management said its manufacturing index came in at 42.8 for May from April's 40.1. A reading above 50 signals expansion. Economists were forecasting a reading of 42.0. For more see [ID:nN01463669].
"The ISM suggests that the U.S. economy is stabilizing, if not outright improving and the market is all about risk appetite coming back," said Shaun Osborne, chief currency strategist at TD Securities in Toronto.
"Generally, this is still a case of better-than-expected data not necessarily good for the U.S. dollar. We expect no rebound in sight for the dollar just yet."
The euro was up 0.3 percent at $1.4196. The dollar was last 1 percent higher against the yen at 96.25 yen , after going as high as 96.35 yen.
The yen is considered to have the least risk of all currencies and will fall even against the dollar as risk tolerance rises.
