US dollar mixed following manufacturing data

The US dollar traded mixed against other major currencies on Monday amid upbeat manufacturing data and the comment of Federal Reserve Chairman Ben Bernanke on the monetary policy and economy. The dollar was under pressure throughout the session as a latest report from the Institute of Supply Management said its monthly manufacturing index rose to 51.5 in September. It was the first time in four months that the index stayed above 50, a level indicating growth. Moreover, the sub-index also showed new orders, employment and inventories were growing in the past three months, a sign that the manufacturing sector was gaining strength. The upbeat report lifted riskier currencies such as the euro as they tend to rise when investors think economic conditions are getting better. The euro also found support from better-than-expected economic data out of German and decent manufacturing numbers from debt- plagued Spain and Italy. However, the gains were checked amid concerns over a possible credit downgrade by the Moody's for Spain. In late New York trading, the euro rose to 1.2886 from 1. 2855 on Friday, while the British pound slipped to 1.6133 dollars from 1. 6140. The dollar fell to 0.9383 Swiss francs from 0.9404 and dropped to 0.9822 Canadian dollars from 0.9834. The dollar bought 78.02 Japanese yen, higher than 77.99 in the previous session.