Investing.com - The dollar remained broadly higher against the other major currencies in quiet trade on Monday, despite the release of downbeat manufacturing activity data from new York, as growing expectations for a December rate hike by the Federal Reserve continued to support the greenback.
EUR/USD dropped 0.59% to six-month lows of 1.0709.
The Federal Reserve Bank of New York reported that its general business conditions index improved to -10.7 this month from a reading of -11.4 in October. Analysts had expected the index to rise to -6.0 in November.
Demand for safe haven assets was boosted after attackers killed more than 130 people in Paris on Friday, prompting retaliatory French air strikes against Islamic State in Syria.
The single currency was already under pressure from heightened expectations that the European Central Bank will enlarge its stimulus program, aimed at boosting price growth in the euro area, before the years end.
The greenback remained broadly supported after Fed Vice-Chair Stanly Fischer said Thursday that it "may be appropriate" for the Fed to begin raising rates next month.
USD/JPY gained 0.41% to 123.11.
The yen showed little reaction after data showing that Japan’s economy contracted at an annual rate of 0.8% in the three months to September, after a 1.2% contraction in the previous quarter, putting the country into a technical recession.
The weak data added to pressure on the Bank of Japan to step up monetary easing measures to shore up growth.
Elsewhere, the dollar was higher against the pound and the Swiss franc, with GBP/USD shedding 0.27% to 1.5196 and with USD/CHF adding 0.17% to 1.0076.
The Australian and New Zealand dollars were weaker, with AUD/USD down 0.62% at 0.7086 and with NZD/USD retreating 0.97% to 0.6476.
Meanwhile, USD/CAD rose 0.32% to trade at one-month highs of 1.3364 after data showed that Canada's manufacturing sales declined by 1.5% in September, compared to expectations for a 0.1% uptick.
Manufacturing sales slipped 0.6% in August, whose figure was revised from a previously estimated 0.2% dip.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.49% at 99.37, close to last week's seven-month highs of 99.60.