Investing.com - The dollar remained broadly higher against the other major currencies on Monday, hovering close to two-week highs as hopes for additional U.S. rate hikes this year continued to support the greenback.
USD/JPY rose 0.36% to 113.07.
The greenback remained broadly supported after data on Friday showing that U.S. core inflation rose at the fastest rate in four years in January underlined expectations for further interest rates hikes by the Federal Reserve this year.
EUR/USD dropped 0.90% to 1.1030.
The euro weakened after research group Markit said that its Flash Euro Zone Composite Output Index, which measures the combined output of both the manufacturing and service sectors dropped from 53.6 in January to 53.0 in February, a 13-month low and below forecasts for 53.3.
The report came shprtly after data showing that French private sector activity slid into contraction territory last month, while business activity in Germany grew at the slowest pace in seven months.
The data added to pressure on the European Central Bank to step up measures to bolster growth in the region.
Elsewhere, the dollar was higher against the pound and the Swiss franc, with GBP/USD down 1.85% at a six-year low of 1.4139 and with USD/CHF gaining 0.70% to 0.9974.
Sterling came under broad selling pressure after London Mayor Boris Johnson’s shock decision to back a campaign for Britain to exit the European Union.
British Prime Minister David Cameron reached a deal with EU leaders on Friday giving Britain a special status in the bloc, which paved the way for him to call a referendum on EU membership on June 23.
But on Sunday London’s Mayor Boris Johnson said he would be supporting the campaign to leave, arguing it is a chance "to vote for real change".
The move is being seen as a significant blow to the prime minister’s campaign to remain in the EU.
David Cameron was to present his argument for the U.K. remaining within a reformed EU to MPs later in the day.
Meanwhile, the Australian and New Zealand dollars moved higher, with AUD/USD up 1.12% at 0.7231 and with NZD/USD rallying 1.15% to 0.6709.
USD/CAD declined 0.64% to trade at 1.3676.
The commodity-related currencies found support as oil prices moved above $33 a barrel on Monday, as supply glut concerns subsided.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.77% at 97.36, still close to the two-week high of 97.61 hit earlier in the day.