10:08 AM EDT, 05/23/2024 (MT Newswires) -- The US dollar rallied against all major currencies including the euro, pound and yen in North American trade on Thursday after the S&P Global Composite PMI climbed sharply, led by a strong rebound in services sector activity.

EUR/USD and GBP/USD fell from near session highs of 1.0859 and 1.2745 to new intraday lows of 1.0830 and 1.2703 respectively, while USD/JPY rose further off intraday lows around 156.53 to trade above 157 after the S&P Global Composite PMI climbed to 54.4 in May.

That was up sharply from 51.3 in April and far ahead of the consensus for 51.1 owing to strong increase in the S&P Global Flash Services PMI, which rose to 54.8 in May from 51.3 previously.

Meanwhile, the S&P Global Flash Manufacturing PMI edged up to 50.9 in May, from 50 previously, which was modestly above the consensus that had looked for an unchanged reading.

Notably for the Federal Reserve, both input and output prices rose at an accelerated pace in May with manufacturing prices having overtaken services prices as the main source of inflation in the recent two months. However, the overall rate of selling price inflation remained below the average seen over the past year, S&P Global said.