The dollar was almost unchanged at a seven-month high against other major currencies on Monday, as growing expectations for a U.S. rate hike before the end of the year continued to support the greenback.
EUR/USD added 0.13% to 1.0984, off a more than two-month low of 1.0964 hit overnight.
The greenback strengthened broadly after U.S. retail sales rose 0.6% in September, in line with expectations and after a revised 0.2% fall the previous month.
In addition, the U.S. producer price index rose 0.3% in September, compared to expectations for an increase of 0.2%.
The upbeat data added to expectations for an upcoming U.S. rate hike after the minutes of the Federal Reserve’s September policy meeting showed last week that several voting members believed a rate hike would be warranted “relatively soon” if the U.S. economy continued to strengthen.
Market participants were looking ahead to reports on U.S. industrial production and manufacturing activity in the New York area, due later in the day, for further indications on the strength of the economy.
USD/JPY was little changed at 104.20, close to last week’s more than two-month peak of 104.63.
GBP/USD slipped 0.20% to trade at 1.2163.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at a seven-month high of 98.04.