Yen strengthens after a big drop in Tokyo stocks (2016.06.02)

Yen strengthens after a big drop in Tokyo stocks – The U.S. dollar stayed lower against the other major currencies after the release of mixed U.S. economic reports that added uncertainty over the rate hike in June. The Institute of Supply Management reported that the manufacturing purchasing manager’s index rose to 51.3 from 60.8 in previous month, better than expected drop to 50.4. The new orders index however fell to 55.7, and the employment index was flat at 49.2. The other report from Markit showed slowest activity in manufacturing since 2009. The U.S. construction spending also fell 1.8% in April with the largest drop since 2011, disappointing expected 0.6% rise. The mixed figures raised doubts over whether the Federal Reserve is to raise the interest rate in June. The dollar declined 0.4% against other major currencies at 95.45.