US dollar falls below ¥100

By a staff reporter

The United States dollar fell below the ¥100 level for the first time since May 9 in the wake of a disappointing report on US manufacturing activity.

Data from the Institute of Supply Management (ISM) showed that US manufacturing activity unexpectedly contracted in May from 50.7 per cent in April to 49 per cent in May. Economists had predicted a 51 per cent reading and a reading below 50 per cent is seen as indicative of a contraction.

At 0442 AEST Tuesday morning, the US dollar was trading at ¥99.21, down from ¥100.45 in the previous session.

The dollar had breached the ¥100 mark in early May and had posted an overall gain of nearly two per cent for the month.

However, rising expectations that the US Federal Reserve will soon begin tapering its stimulus measures are expected to have a negative impact on the dollar.