The dollar erased losses against the yen on Monday after better-than-expected U.S. data on personal spending and pending home sales.
During U.S. morning trade, the dollar rose to session highs against the yen, with USD/JPY edging up 0.08% to 98.14, up from session lows of 97.36.
The dollar found support after official data showed that U.S. consumer spending rose 0.2% in March, above expectations for a modest 0.1% increase.
The data eased concerns over the outlook for the U.S. economic recovery after data on Friday showed that the U.S. economy expanded by 2.5% in the first quarter, below expectations for 3% growth.
A separate report by the National Association of Realtors said its pending home sales index rose by 1.5% in March, beating expectations for a 1% gain.
Markets were looking ahead to the outcome of the Federal Reserve’s upcoming policy meeting on Wednesday for further cues on the direction of monetary policy.
The dollar was lower against the euro, with EUR/USD rising 0.53% to 1.3098.
The euro was boosted as Italy saw borrowing costs fall to the lowest levels since October 2010 at an auction of five and 10-year bonds on Monday, after a new government was sworn in over the weekend, ending two months of political deadlock.
But sentiment on the single currency remained fragile ahead of Thursday’s European Central Bank policy meeting, amid speculation over an interest rate cut following recent weak economic data.
Recent comments by ECB officials have indicated that the bank would consider cutting rates if economic data continued to deteriorate.
The dollar pulled back from two-and-a-half month lows against the pound, with GBP/USD up 0.10% to 1.5492, off session highs of 1.5546.
Demand for sterling continued to be underpinned after data last week showed that the U.K. economy returned to growth in the first quarter, avoiding a triple-dip recession.
The dollar was lower against the Swiss franc, with USD/CHF losing 0.59% to trade at 0.9368.
The greenback was broadly weaker against its Australian, New Zealand and Canadian counterparts, with AUD/USD rising 0.61% to 1.0343, NZD/USD rallying 0.85% to 0.8552 and USD/CAD shedding 0.31% to trade at 1.0138.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.39% to 82.25.
During U.S. morning trade, the dollar rose to session highs against the yen, with USD/JPY edging up 0.08% to 98.14, up from session lows of 97.36.
The dollar found support after official data showed that U.S. consumer spending rose 0.2% in March, above expectations for a modest 0.1% increase.
The data eased concerns over the outlook for the U.S. economic recovery after data on Friday showed that the U.S. economy expanded by 2.5% in the first quarter, below expectations for 3% growth.
A separate report by the National Association of Realtors said its pending home sales index rose by 1.5% in March, beating expectations for a 1% gain.
Markets were looking ahead to the outcome of the Federal Reserve’s upcoming policy meeting on Wednesday for further cues on the direction of monetary policy.
The dollar was lower against the euro, with EUR/USD rising 0.53% to 1.3098.
The euro was boosted as Italy saw borrowing costs fall to the lowest levels since October 2010 at an auction of five and 10-year bonds on Monday, after a new government was sworn in over the weekend, ending two months of political deadlock.
But sentiment on the single currency remained fragile ahead of Thursday’s European Central Bank policy meeting, amid speculation over an interest rate cut following recent weak economic data.
Recent comments by ECB officials have indicated that the bank would consider cutting rates if economic data continued to deteriorate.
The dollar pulled back from two-and-a-half month lows against the pound, with GBP/USD up 0.10% to 1.5492, off session highs of 1.5546.
Demand for sterling continued to be underpinned after data last week showed that the U.K. economy returned to growth in the first quarter, avoiding a triple-dip recession.
The dollar was lower against the Swiss franc, with USD/CHF losing 0.59% to trade at 0.9368.
The greenback was broadly weaker against its Australian, New Zealand and Canadian counterparts, with AUD/USD rising 0.61% to 1.0343, NZD/USD rallying 0.85% to 0.8552 and USD/CAD shedding 0.31% to trade at 1.0138.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.39% to 82.25.
