Investing.com - The dollar was trading at fresh seven-month highs against the other major currencies on Monday, as heightened expectations for a December rate hike by the Federal Reserve continued to boost demand for the greenback.
USD/JPY rose 0.30% to 123.18.
Demand for the dollar continued to be underpinned by expectations that the Fed is on track to raise interest rates next month.
New York Fed President William Dudley said Friday that there is a "strong case" for hiking rates at the central bank’s next meeting in December as long as economic data continues to remain solid.
Higher U.S. interest rates would make the greenback more attractive to yield-seeking investors.
EUR/USD slipped 0.20% to trade at seven-month lows of 1.0624.
The euro weakened after European Central Bank President Mario Draghi said on Friday that the bank is ready to act quickly to boost inflation in the euro zone and can also change the level of its deposit rate to boost the impact of quantitative easing.
Earlier Monday, research group Markit said that its euro zone composite purchasing managers' index, which measures the combined output of both the manufacturing and service sectors, rose from 53.9 in October to 54.4 in November, the highest level in more than four years and beating forecasts for 53.9.
Markit also said the German manufacturing PMI ticked up to 52.6 this month from 52.1 in October, while the services PMI rose to 55.6 in November from 54.5 in October.
In France, Markit's manufacturing PMI ticked up to 50.8 in November from 50.6 the previous month, in line with expectations, while the services PMI fell to 51.3 from 52.7.
Elsewhere, the dollar was higher against the pound and the Swiss franc, with GBP/USD down 0.22% at 1.5154 and with USD/CHF adding 0.11% to 1.0198.
The Australian and New Zealand dollars were weaker, with AUD/USD declining 0.85% to 0.7177 and with NZD/USD retreating 0.94% to 0.6504.
Meanwhile, USD/CAD climbed 0.50% to trade at 1.3418.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.23% at a fresh seven-month high of 99.89.