The dollar turned higher against the other major currencies on Monday, after data showed that U.S. personal spending rose more than expected last month amid growing expectations for a U.S. rate hike before the year-end.
The dollar rose against the euro, with EUR/USD down 0.23% at 1.1167.
The U.S. Bureau of Economic Analysis reported that personal spending rose 0.4% in August, beating expectations for an increase of 0.3%. Personal spending rose 0.4% in July, whose figure was revised from a previously estimated 0.3% gain.
The report also showed that U.S. personal income increased by 0.3% last month, compared to expectations for a 0.4% gain. Personal income rose 0.5% in July, whose figure was revised from a previously estimated 0.4% increase.
The data added to support for the greenback after Federal Reserve Chair Janet Yellen said last Thursday that the U.S. central bank remains on track to raise interest rates this year.
The comments reassured investors that monetary policy has not altered significantly following the Fed’s decision to hold off hiking rates earlier this month.
The dollar was lower against the yen, with USD/JPY down 0.29% at 120.14.
Market sentiment weakened after International Monetary Fund head Christine Lagarde said in an interview on Monday that the IMF is likely to revise downwards its estimates for global economic growth due to slower expansion in emerging economies.
Elsewhere, the dollar trimmed losses against the pound, with GBP/USD up 0.11% at 1.5194, and moved higher against the Swiss franc, with USD/CHF up 0.17% at 0.9799.
The Australian and New Zealand dollar were weaker, with AUD/USD down 0.48% at 0.6993 and with NZD/USD retreating 0.58% to 0.6346.
Meanwhile, USD/CAD edged up 0.19% to trade at 1.3361, re-approaching last week’s six-year peak of 1.3417.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.18% at 96.53.