Investing.com - The U.S. dollar extended gains against its major counterparts on Monday, as concerns over the economic outlook for the euro zone and ongoing political uncertainty in the region saw investors shun riskier asserts in favor of the greenback.
During European afternoon trade, the dollar was higher against the euro, with EUR/USD shedding 0.67% to hit 1.3127.
Earlier Monday, data showed that the euro zone's manufacturing output slumped to its lowest level since June 2009 this month, while its services sector fell to a five month low.
The decline was driven by poor performances in Germany and France, with manufacturing activity in Germany slowing to the lowest level in almost three years.
The weak data fuelled fears economic growth in the region will be hit by planned government austerity measures.
Sentiment was further hit by as investors mulled the implications of the impending collapse of the Dutch government following failed budget negotiations and outcome of the first round of the French presidential election.
The greenback was also higher against the pound, with GBP/USD sliding 0.20% to hit 1.3129.
The pound remained supported after data on Friday showed that U.K. retail sales posted the biggest jump in over a year in March, fuelling hopes that the economic recovery is gaining momentum and dampening expectations for a fresh round of monetary stimulus from the Bank of England.
Elsewhere, the greenback was lower against the yen but pushed higher against the Swiss franc, with USD/JPY dropping 0.49% to hit 81.11 and USD/CHF adding 0.69% to hit 0.9151.
The greenback was broadly higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD gaining 0.44% to hit 0.9964, AUD/USD falling 0.88% to hit 1.0288 and NZD/USD tumbling 0.96% to hit 0.8107.
In Australia, official data showed that producer price inflation fell unexpectedly in the first quarter, fuelling expectations for a rate cut by the Reserve Bank of Australia at its policy meeting next week.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.43% at 79.62.
Also Monday, the Bank of Spain said it believes that the country’s economy has entered a recession.
The central bank said gross domestic product contracted by 0.4% in the three months to March. That follows a 0.3% contraction in the fourth quarter, and zero growth in the third quarter of last year.
During European afternoon trade, the dollar was higher against the euro, with EUR/USD shedding 0.67% to hit 1.3127.
Earlier Monday, data showed that the euro zone's manufacturing output slumped to its lowest level since June 2009 this month, while its services sector fell to a five month low.
The decline was driven by poor performances in Germany and France, with manufacturing activity in Germany slowing to the lowest level in almost three years.
The weak data fuelled fears economic growth in the region will be hit by planned government austerity measures.
Sentiment was further hit by as investors mulled the implications of the impending collapse of the Dutch government following failed budget negotiations and outcome of the first round of the French presidential election.
The greenback was also higher against the pound, with GBP/USD sliding 0.20% to hit 1.3129.
The pound remained supported after data on Friday showed that U.K. retail sales posted the biggest jump in over a year in March, fuelling hopes that the economic recovery is gaining momentum and dampening expectations for a fresh round of monetary stimulus from the Bank of England.
Elsewhere, the greenback was lower against the yen but pushed higher against the Swiss franc, with USD/JPY dropping 0.49% to hit 81.11 and USD/CHF adding 0.69% to hit 0.9151.
The greenback was broadly higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD gaining 0.44% to hit 0.9964, AUD/USD falling 0.88% to hit 1.0288 and NZD/USD tumbling 0.96% to hit 0.8107.
In Australia, official data showed that producer price inflation fell unexpectedly in the first quarter, fuelling expectations for a rate cut by the Reserve Bank of Australia at its policy meeting next week.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.43% at 79.62.
Also Monday, the Bank of Spain said it believes that the country’s economy has entered a recession.
The central bank said gross domestic product contracted by 0.4% in the three months to March. That follows a 0.3% contraction in the fourth quarter, and zero growth in the third quarter of last year.