Investing.com - The dollar was steady against the yen on Monday as prospects for an earlier than anticipated U.S. rate hike lent support, while the euro remained lower after data showed that German private sector activity slowed in March.
USD/JPY was last trading at 102.25, not far from last Wednesday’s highs of 102.67
The greenback continued to remain supported after markets brought forward expectations for rise in U.S. borrowing costs after Fed Chair Janet Yellen suggested last week that rates might start to rise about six months after the bank’s stimulus program ends, which is expected to happen in the fall.
Market sentiment remained subdued following a report showing that Chinese manufacturing activity deteriorated again in March.
The preliminary reading of China’s HSBC manufacturing purchasing managers\'' index fell to an eight-month low of 48.1 in March from a final reading of 48.5 in February. Analysts had expected the index to tick up to 48.7.
Elsewhere, EUR/USD touched lows of 1.3760 and was last down 0.14% to 1.3774, holding just above last Thursday’s two-week lows of 1.3748.
The euro slipped after data showed that German private sector activity slowed in March. The data overshadowed another report showing a return to growth in the bloc’s second largest economy, France.
The pace of the recovery in the euro zone’s private sector slowed slightly in March, but remained close to the previous month’s two-and-a-half year highs.
The dollar was steady close to five-week lows against the pound, with GBP/USD trading at 1.6486. The greenback pushed higher against the Swiss franc, with USD/CHF climbing 0.22% to 0.8848.
The Australian dollar shrugged off the weak Chinese manufacturing data, with AUD/USD rising 0.43% to 0.9120. NZD/USD was little changed at 0.8538, while USD/CAD edged down 0.09% to 1.1211.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.08% to 80.34.
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