Dollar lower as market doubts factory sector rebound

NEW YORK (AFP) — The dollar lost ground against major currencies Tuesday as skeptical traders paid little heed to a forecast-beating snapshot of US manufacturing activity.

The euro advanced to 1.5796 dollars at 2100 GMT after 1.5745 on Monday.

The dollar was meanwhile lower against the yen at 106.10, down from 106.13 on Monday.

The US unit failed to enjoy a lasting bounce from news that the Institute of Supply Management (ISM) manufacturing index in the United States improved to 50.2 in June from 49.6 in May, beating predictions of a drop to 48.5.

The latest reading was above the 50-point cut-off that marks expansion. At the same time, the employment sub-index fell to 43.7 from 45.5, well below the 50 level for the eighth consecutive month.

"While the initial reaction was positive ... prices paid (inflation) ...