Investing.com - The dollar remained broadly higher a basket of other major currencies on Monday, after data showing that manufacturing activity in the U.S. expanded at a faster pace than expected in May added to expectations for a rate hike by the Federal Reserve.
In a report, the Institute for Supply Management said its index of purchasing managers rose to 52.8 last month from a reading of 51.5 in April. Analysts had expected the manufacturing PMI to edge up to 52.0 in May.
Earlier Monday, the Commerce Department reported that U.S. personal spending was unchanged in April, compared to expectations for a gain of 0.2%. Personal spending rose 0.5% in March, whose figure was revised up from a previously reported gain of 0.4%.
The report also showed personal income rose 0.4% in April, above forecasts for a 0.3% increase and after holding flat in March.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.60% at 97.53, moving closer to last week's five-week highs of 97.88.
EUR/USD dropped 0.74% to 1.0910 as concerns over the prospect of a Greek debt default continued to weigh.
Greece is due to make a €305 million payment to the International Monetary Fund on June 5.
Meanwhile, data on Monday showed that the euro zone manufacturing purchasing managers' index came in at 52.2, unchanged from March’s final reading and a 10-month high, but down slightly from the preliminary estimate of 52.3.
Weakness in the region’s core economies persisted, with France’s manufacturing sector still in decline and Germany registering only modest growth.
A separate report showed that the German consumer price index ticked up 0.1% in May, in line with expectations and after a flat reading the previous month. Year-on-year, consumer prices rose 0.7%, as anticipated.
The pound was also lower, with GBP/USD sliding 0.41% to 1.5224 after the Markit U.K. manufacturing PMI ticked up to 52.0 in May from a downwardly revised 51.8 in April, but came in below forecasts of 52.5.
Sterling also remained under pressure amid renewed concerns over a possible British exit from the European Union.
Prime Minister David Cameron’s government introduced a law in parliament on Thursday to ensure a U.K. referendum on EU membership will be held by the end of 2017.
The greenback was higher against the yen and the Swiss franc, with USD/JPY adding 0.14% to a 12-year peak of 124.32 and with USD/CHF rising 0.22% to 0.9443.
The Australian dollar was lower, with AUD/USD down 0.41% to 0.7617, while NZD/USD held steady at 0.7106.
USD/CAD climbed 0.67% to 1.2538, re-approaching last week's six-week highs of 1.2537.