2019.09.2316:52:00UTC+00Dollar Stays Firm Against Most Major Rivals

The U.S. dollar stayed fairly positive on Monday, as it gained in strength after data showed euro zone service sector to be moving close to stalling at the end of the third quarter.

The dollar has been faring well amid uncertainty about the outlook for interest rates. The Fed, which lowered interest rate by 25 basis points last week, indicated officials were mixed about whether the bank should cut rates again before the end of the year.

Among the fed officials, there are some participants who expect another rate cut before the end of the year. Some feel rates will remain unchanged this year, while a few others expect rates to be raised back to 2 to 2.25%.

The dollar index, which rose to 98.83 early on in the day, was last seen at 98.63, up 0.11% from previous close.

Against the euro, the dollar was up nearly 0.25%, at 1.0991. The euro lost ground against some other major rivals as well as German private sector activity shrank to the lowest level since October 2012.

IHS Markit said Germany's flash composite PMI declined to 49.1 from 51.7 in August. The services PMI came in a at 9-month low of 52.5 versus 54.8 a month ago, and the Factory PMI plunged to a 123-month low of 41.4, compared to 43.5 in August.

The Eurozone flash composite output index fell unexpectedly to a 75-month low of 50.4 in September from 51.9 in August.

The ECB President Mario Draghi's comments that a rebound in eurozone growth is unlikely in near future also weighed on the euro.

The Pound Sterling was down 0.33% at $1.2434, after weakening to a low of $1.2413 around mid-morning.

The Yen was up marginally against the dollar, with a unit of the U.S. currency fetching 107.49 yen, against Friday's close of 107.56 yen.

The dollar was little changed against the loonie and Swiss franc, at 1.3260 and 0.9904, respectively. Against the Aussie, it was down by about 0.1%.