Investing.com - The dollar was broadly higher against a basket of other major currencies on Monday, as upbeat U.S. economic reports published on Friday continued to boost optimism over the strength of the recovery.
The dollar regained some ground after a report by the Institute for Supply Management on Friday showed that activity in the manufacturing sector was stable in April, after slowing in the five previous months.
Another report showed that U.S. consumer sentiment rose in April to its highest level since January.
The reports fuelled optimism that the U.S. economy has turned a corner after a recent soft patch.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.34% to 95.71.
EUR/USD dropped 0.58% to 1.1134 after data showed that growth in the euro zone manufacturing sector eased slightly in April, but indicated that the economic recovery remains on track.
Research group Markit said the final reading of its manufacturing purchasing managers’ index came in at 52.0, revised up from the preliminary reading of 51.9 but below March's 10-month high of 52.2.
Germany’s manufacturing index ticked down to 52.1 from an 11-month high of 52.8 in March, while the French factory sector remained in contraction territory for the 12th straight month.
The pound slipped lower, with GBP/USD down 0.12% to 1.5118.
Elsewhere, the dollar was steady against the yen, with USD/JPY at 120.17 and higher against the Swiss franc, with USD/CHF gaining 0.49% to 0.9370.
The Australian dollar edged lower, with AUD/USD slipping 0.11% to 0.7834, while NZD/USD held steady at 0.7537.
The Australian Bureau of Statistics earlier reported that building approvals rose 2.8% in March, beating expectations for a 2.0% decline.
Data also showed that Australia's job advertisements increased by 2.3% last month after a 1.3% decline in March.
The export-related currencies were hit by data showing that Chinese manufacturing activity contracted at the fastest rate in a year in April, adding to concerns over a slowdown in the world’s second-largest economy.
China's HSBC final manufacturing purchasing managers' index slipped to 48.9 in April from 49.2 the previous month, compared to expectations for a rise to 49.4.
Meanwhile, USD/CAD fell 0.23% to trade at 1.2133.
Later in the day, the U.S. was to publish data on factory orders.