NEW YORK: The dollar was little changed on Monday against a basket of major trading currencies and gained against a yen that’s under intervention watch after the Japanese finance minister warned last week of excessive moves in the currency market.

The dollar initially weakened on news US manufacturing slumped further in June to levels last seen when the economy was reeling from the initial wave of the COVID-19 pandemic.

“The key on the ISM was the prices paid, which was much weaker than expected,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. “The ISM saw the dollar pare its earlier gains,” he said.

It intervened again in October after the yen plunged to a 32-year low of 151.94.

The Japanese yen weakened 0.17% versus the greenback to 144.59 per dollar.

Fears of a slowdown in the global economy have weighed on the euro, which started the third quarter down 0.1% at $1.0897, after rising for three consecutive quarters.

A private sector survey showed on Monday that China’s factory activity growth slowed in June, with sentiment waning and recruitment cooling as firms grew increasingly concerned about sluggish market conditions.