The dollar gained on the euro Monday, staying near its highest since February amid expectations the European Central Bank will delivery monetary easing later this week.
A flurry of disappointing manufacturing news out of the euro zone all but assures that ECB policy makers will announce stimulus on Thursday.
The dollar rose to $1.3590 from $1.3640 against the euro, and may challenge its 2014 highs at some point this week.
The German manufacturing sector expanded less than expected in May and at the weakest pace since last October, final data from Markit Economics showed.
Meanwhile, the French manufacturing sector deteriorated for the first time in three months in May largely due to a decline in new orders.
All told, the recovery in the Eurozone manufacturing sector was slower than initially estimated in May, final data from Markit Economics showed.
The final seasonally adjusted Markit manufacturing Purchasing Managers’ Index fell to 52.2 from 53.4 in April. The flash estimate for May was 52.5.
The dollar held recent gains versus the sterling at $1.6735. The buck rallied versus the yen, edging away from a 4-month low to fetch Y102.40 on diminishing expectations the Bank of Japan will offer its own stimulus.