Investing.com - The dollar extended gains against the other major currencies on Monday, after data showed that U.S. personal spending rose in line with expectations in June, fuelling optimism over the strength of the economy.
Data showed that U.S. personal spending rose 0.2% in June, in line with expectations. Personal spending increased by 0.7% in May, whose figure was revised from a previously estimated gain of 0.9%.
The report also showed that U.S. personal income rose 0.3% in June, exceeding expectations for an uptick of 0.2%. Personal income rose by 0.4% in May, whose figure was revised from a previously estimated increase of 0.5%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.34% at 97.64.
EUR/USD slid 0.32% to 1.0947 even after data showed that the euro zone's manufacturing sector continued to expand at a steady pace at the start of the third quarter.
Continuing expansion in Germany, Spain and Italy offset a record contraction of the Greek manufacturing sector last month after capital controls were imposed to avert a collapse of the country's financial system.
The dollar rose against the yen, with USD/JPY up 0.34% to 124.24, and was steady against the Swiss franc, with USD/CHF at 0.9674.
The dollar received a boost after weak Chinese factory data on Monday added to concerns over a slowdown in the world’s second-largest economy.
The final reading of the Caixin/Markit China manufacturing purchasing managers' index fell to 47.8 in July, the lowest since July 2013, from 49.4 in June. It was the fifth straight month of contraction.
The dollar was higher against the pound, with GBP/USD shedding 0.33% to 1.5576.
Research group Markit reported on Monday that the U.K. manufacturing PMI ticked up to 51.9 last month from 51.4 in June, which was the lowest level in over two years. Economists had expected a reading of 51.6.
The Australian and New Zealand dollars were lower, with AUD/USD down 0.54% to 0.7268 and with NZD/USD slipping 0.11% to 0.6585.
Data earlier showed that job advertisements in Australia fell 0.4% last month after an increase of 1.2% in June, whose figure was revised from a previously estimated 1.3% gain.
Meanwhile, USD/CAD climbed 0.53% to fresh 11-year highs of 1.3160.