Investing.com - The dollar remained lower against a basket of other major currencies on Monday, as investors continued to lock in profits from the greenback's recent rally to 11-1/2 year highs and after disappointing U.S. data dampened optimism over the strength of the economy.
Official data earlier showed that U.S. industrial production rose just 0.1% in February, falling short of expectations for a 0.2% gain.
Manufacturing output dipped 0.1% as automobile production fell, indicating that economic growth could slow in the first quarter.
Another report showed that manufacturing activity growth in New York State slowed in March for a second straight month as new orders fell.
Market participants were now eyeing Wednesday’s Federal Reserve statement to see if it would drop its reference to being patient before raising rates and signal that it is ready to hike rates depending on economic data.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.69% to 100.02, still close to Friday's highs of 100.78, the strongest since September 2003.
EUR/USD climbed 0.76% to 1.0575, pulling away from Friday's 12-year low of 1.0460.
The euro found support after Italy's central bank governor expressed concerns over that the pace of its fall since the European Central Bank launched its trillion-euro quantitative easing program early last week.
He added that there were risks the program could overshoot its goal, as well as fuel an excessive rise in asset prices.
The dollar was steady against the yen, with USD/JPY at 121.31 and higher against the Swiss franc, with USD/CHF easing up 0.09% to 1.0064.
In Switzerland, the Federal Statistical Office earlier reported that retail sales declined 0.3% in January, disappointing expectations for a gain of 2.6%. Retail sales growth in December was revised down to a gain of 1.9% from a previously reported increase of 2.2%.
Data also showed that Swiss producer prices slumped 1.4% last month, compared to forecasts for a gain of 0.4%, after a 0.6% decline in January.
Sterling gained ground, with GBP/USD rising 0.30% to 1.4792, up from Friday's nearly five-year lows of 1.4696.
The Australian and New Zealand dollars were stronger, with AUD/USD adding 0.23% to 0.7653, while NZD/USD advanced 0.52% to 0.7381.
Elsewhere, USD/CAD was little changed, near six-year highs at 1.2785.
Official data showed on Monday that foreign securities purchases rose by C$5.73 billion in January, exceeding expectations for an increase of C$3.74 billion. December's figure was revised to a C$13.54 billion drop from a previously estimated fall of C$13.55 billion.