The dollar climbed on Monday, helped by the pound falling on heightened “Brexit” worries and the yen dropping amid Tokyo stocks’ steady gains.
The ICE U.S. Dollar index a measure of the buck’s strength against a basket of six rival currencies – jumped 0.9% to 97.46, clinging to gains despite a weak reading from the Markit U.S. manufacturing PMI, which declined to 51 in the February flash estimate, its lowest level since 2012.
The pound plunged to $1.4058, its lowest level in seven years and its largest daily drop since 2009, on heightened fears the U.K. will leave the European Union after London Mayor Boris Johnson came out in favor of a so-called Brexit.
Meanwhile, the yen was weaker against its rivals, as investors pulled back on looking for safety in the Japanese currency as stocks across the globe showed sharp gains. The yen tends to lure bidders in times of market turmoil.
The yen dropped against the dollar, which gained to ¥113.33, from ¥112.65 late Friday in New York.
In other currency-pair trading, the euro was at $1.1040, down 1.1% from $1.1133, weighed down by Brexit worries and a weaker-than-expected preliminary reading on business activity.