Investing.com - The dollar pushed higher against the other major currencies on Monday, after data showing that U.S. manufacturing activity returned to expansion in September boosted optimism over the strength of the economy.
USD/JPY rose 0.23% to 101.57, not far from last Thursday’s one-week highs of 101.86.
The greenback strengthened after the Institute for Supply Management said its index of manufacturing activity rose to 51.5 last month from August’s reading of 49.4. Analysts had forecast a lesser increase to 50.3.
The reports added to hopes for a U.S. rate hike before the end of the year following upbeat U.S. consumer sentiment data released on Friday.
EUR/USD slipped 0.23% to 1.1213.
The euro had found some support following reports late last week that Deutsche Bank (DE:DBKGn) is nearing a deal to settle a mortgage-securities investigation by paying a $5.4 billion fine, well below the Justice Department’s original proposal of $14 billion.
The pound dropped to fresh three-month lows, with GBP/USD down 1.12% at 1.2832, while USD/CHF edged up 0.14% to 0.9731.
Research group Markit said its U.K. manufacturing purchasing managers’ index jumped to 55.4 last month from a reading of 53.3 in August. That was its highest level since 2014. Analysts had expected the index to drop to 52.1 in August.
But investors remained cautious after U.K. Prime Minister Theresa May said on Sunday that she would trigger the process of leaving the European Union by the end of March.
Triggering Article 50 of the EU's Lisbon Treaty will give Britain a two-year period to clinch one of the most complex deals in Europe since World War Two, and will redefine the country's ties with its biggest trading partner.
The Australian dollar was steady, with AUD/USD at 0.7662, while NZD/USD slid 0.36% to 0.7258.
Elsewhere, USD/CAD held steady at 1.3132.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.24% at 95.61, re-approaching Friday’s more than one-week high.