The dollar strengthened to a seven-month high against the yen and government bonds fell before data that analysts forecast will show expansion in U.S. manufacturing. Commodities tumbled as oil and gold sank.
U.S. stocks fluctuated after the Standard & Poor’s 500 Index had its best month since February, as investors awaited data estimated to show manufacturing in the world’s biggest economy continued to expand in August.
A drive to update plants and equipment is propelling gains in business investment that will probably keep American factories busy even as consumer spending shows signs of cooling. Better wage growth could broaden household purchases beyond automobiles and help sustain the pickup in manufacturing.
The euro traded at almost its lowest level versus the dollar since November as investors held the largest position in two years betting on a drop in the currency before the region’s central bank meets this week.