Dollar edges up on healthy US manufacturing report

The dollar inched up against other major currencies on Tuesday, helped by a report showing a generally healthy US manufacturing sector in the lead-up to crucial US employment data due later in the week.
A positive reading in the Institute for Supply Management's manufacturing index was helping the dollar to buck the dampening effects of security concerns sparked by an official warning of attacks on financial institutions in the United States.
Analysts said the direct impact on the dollar of the warning was already beginning to fade.
"It's almost impossible to price in an extreme event," said Naomi Fink, a senior currency strategist at BNP Paribas. "But there is a chance (US) economic growth will continue unhindered and it seems that is what the market is focusing a bit more on."
The dollar was trading at $1.2008 per euro versus $1.2025 in late US trade.
Although a wall of support was seen at $1.20, analysts said it was only a matter of time before the single currency eased below that level, with some eyeing $1.18 within August.
The dollar was at 110.88 yen firming from 110.70 in late US trade after grazing a one-week low of 110.46 yen in early Tokyo trading.
In Asian trade, bids by Japanese importers were seen supporting the dollar above 110 yen, traders said, although exporters were believed to have lowered orders to the 111 yen level from 112.
The single currency was stable from overseas levels at 133.14 against the yen after touching a one-week low around 132.89 yen.
Analysts said some investors were lightening euro/yen positions in early Tokyo trading, which was seen capping dollar/yen movements.
Intelligence warnings of al Qaeda threats to the New York Stock Exchange and Washington offices of the International Monetary Fund and the World Bank prompted the United States to issue a "high" level threat alert on Sunday.
Despite the warning the Dow Jones industrial average closed at its highest level in more than two weeks on Monday.
Market players are awaiting June figures for personal incomes and consumption, as well as the PCE Price Index due on Tuesday.
The data precedes a highly anticipated US non-farm payrolls report for July due on Friday. They are the last major indicators before the Federal Open Market Committee's meeting on August 10.