Dollar Gains as Manufacturing Report Boosts U.S. Outlook

The dollar rose from a four-week low against the euro after a gauge of U.S. manufacturing unexpectedly advanced in April, easing concern the economic recovery is flagging and damping bets the Federal Reserve will introduce more stimulus.

The greenback climbed against the yen as the data highlighted a divergence between U.S. economic performance and that of Europe, where reports over the past week showed the U.K. and Spain have fallen into recession. Australia’s dollar slid against all of its major peers after the nation’s central bank cut interest rates more than forecast. The pound fell after U.K. factory growth slowed.