The dollar and yen rallied on Monday as Russia’s military incursion into Ukraine sparked fears of a wider conflict.
World leaders are warning Russian president Vladimir Putin against continuing his invasion of the Ukraine’s Crimea region.
Putin said over the weekend that he had the right to attack his neighbor to protect Russian interests and citizens in the Russian-speaking Crimea.
Safe haven currencies and gold have seen their values rise amid concerns that Russia’s actions could harm the global economy.
The dollar rose to $1.3730 from near $1.38 versus the euro as traders also considered a slew of U.S. economic data.
Early gains were also seen against the sterling, with buck up half a percent at $1.666 in mid-afternoon trading.
The dollar was slightly weaker at Y101.50 versus the yen.
In economic news, the Institute for Supply Management released a report on Monday showing that activity in the U.S. manufacturing sector expanded at a faster than expected rate in the month of February.
The ISM said its purchasing managers index climbed to 53.2 in February from 51.3 in January, with a reading above 50 indicating growth in the manufacturing sector.
Meanwhile, construction spending in the U.S. unexpectedly showed a modest increase in the month of January, according to a report released by the Commerce Department on Monday.
The data increased speculation the Federal Reserve will further trim its bond buying program in March.