Investing.com - The euro backed off session lows against the dollar on Monday following the release of lackluster data on U.S. manufacturing activity and consumer spending.
EUR/USD was last at 1.0980, up from lows of 1.0941.
The dollar pared gains after data showed that U.S. consumer spending slowed in June and another report showing that manufacturing activity moderated in July.
The Commerce Department said consumer spending rose just 0.2% in June, after a downwardly revised 0.7% increase in May. It was the slowest rate of increase in four months.
Meanwhile, the Institute for Supply Management said its index of manufacturing activity fell to 52.7 from 53.5 in June.
The output and new orders components of the index both rose, but the employment component of the index fell to 52.7 from 55.5.
Another report showed that U.S. construction spending ticked up just 0.1% in June, the smallest increase since January.
The disappointing economic reports dented dollar demand ahead of Friday’s U.S. jobs report for July. The Federal Reserve has said that a strengthening labor market is a key factor in determining the timing of interest rate hikes.
The euro fell to session lows earlier in the day as the Greek stock market posted steep losses in the first day of trade following a five-week shutdown.
The main Athens stock index fell almost 23% at the open, before recovering slightly, with banking shares, which comprise about 20% of the Greece index, hardest hit.
Trading on the Athens bourse was suspended at the height of the Greek debt crisis in late June as part of capital controls imposed to stem outflows that threatened to collapse the country's banking system.
The euro found some support after data on Monday showed that the euro area manufacturing sector continued to expand at a steady pace at the start of the third quarter.
The final reading of the euro zone manufacturing purchasing managers' index for July came in at 52.4, up from the initial estimate of 52.2.
Continuing expansion in Germany, Spain and Italy offset a record contraction of the Greek manufacturing sector last month after capital controls were imposed.
The single currency edged higher against the yen, with EUR/JPY at 136.11, while USD/JPY was at 123.95, off earlier highs of 124.28.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 97.36.