Investing.com - The dollar rose against a basket of other major currencies on Monday, as markets eyed the release of U.S. economic reports later in the day, after strong consumer sentiment data was published on Friday.
The dollar strengthened broadly after the University of Michigan said, in a preliminary report on Friday, that its consumer sentiment index rose to a nearly eight-year high of 93.8 this month from 88.8 in November. Analysts had expected the index to rise to 89.7 in December.
The U.S. dollar index, which measures the greenback against a basket of six major currencies, was up 0.23% at 88.77.
EUR/USD slid 0.32% to 1.2422 as sentiment on the single currency remained vulnerable after a surprise decision by the Greek government to bring forward a parliamentary vote for president to this week.
The move raised the prospect of snap elections if Prime Minister Antonis Samaras’ candidate is not approved by parliament, which could see the anti-bailout Syriza party take power.
Since the decision, government leaders have expressed fears that Greece could be forced to exit the euro zone if parliament failed to elect a new head of state by December 29.
The yen edged higher, with USD/JPY down 0.13% to 118.62.
Safe-haven demand remained strong amid concerns over the economic impact of the continuing rout in oil prices and its effect on energy companies.
Markets were also jittery ahead of the Federal Reserve's upcoming policy meeting, as ongoing speculation over the prospects for a U.S. rate hike next year fuelled expectations that the U.S. central bank could adjust its forward guidance.
Elsewhere, GBP/USD shed 0.32% to 1.5667 and USD/CHF gained 0.34% to 0.9668.
Data earlier showed that Swiss producer price inflation slipped 0.7% in November, compared to expectations for a 0.2% rise, after a 0.1% downtick the previous month.
The New Zealand dollar fell, with NZD/NZD sliding 0.33% to 0.7752. Meanwhile, the Australian and Canadian dollars held steady, with AUD/NZD at 0.8245 and USD/CAD at 1.1582.
Earlier Monday, Australian Treasurer Joe Hockey earlier said that the underlying cash deficit will deteriorate to A$40.4 billion in the fiscal year ending June 30, 2015, compared to May's estimate of A$29.8 billion.
The government also forecast an unemployment rate of 6.5% by mid 2015, up from the May projection of 6.25%.
Later in the day, the U.S. was to release reports on manufacturing activity in the New York region and industrial production.