NEW YORK: The dollar index turned negative on Monday after data showed that the US services sector barely grew in May as new orders slowed, overturning an earlier rally that was boosted by strong jobs growth in May.

The Institute for Supply Management (ISM) said that its non-manufacturing PMI fell to 50.3 last month from 51.9 in April. A reading above 50 indicates growth in the services industry, which accounts for more than two-thirds of the economy.

Economists polled by Reuters had forecast the non-manufacturing PMI edging up to 52.2.

The dollar index fell to 103.96, down 0.18% on the day, after earlier climbing as high as 104.40. It is holding just below a 11-week high of 104.70 reached on May 31.

The euro was last up 0.10% at $1.0718, just above the low of $1.0635 from May 31, which was the lowest since March 20.

The greenback fell 0.51% to 139.28 yen. It reached 140.93 on May 30, the highest since Nov. 23.

The dollar had risen earlier on Monday on follow through from Friday’s better than expected jobs gains for May, which added to expectations the Federal Reserve may continue hiking rates as inflation remains elevated.

US job growth accelerated by 339,000 jobs in May, but a surge in the unemployment rate to a seven-month high of 3.7% suggested that labor market conditions were easing.

“Job gains continue to surprise meaningfully to the top side, the labor market continues to be very strong,” said Brian Daingerfield, head of G10 FX strategy at NatWest Markets in Stamford, Connecticut.

The US central bank is viewed as most likely to leave rates unchanged in June, but fed funds futures traders are pricing in a 67% likelihood of at least an additional 25 basis points rate hike by July, according to the CME Group’s FedWatch tool.