U.S. Dollar Higher on Greece Concerns

The U.S. dollar advanced against major currencies on Monday after stronger-than-expected data on U.S. manufacturing activity and construction spending, while mounting worries of a Greek default contributed to the euro’s weakness.

Reports on Monday showed U.S. manufacturing activity picked up in May and construction spending surged in April to a nearly 6-1/2-year high. The data bolstered optimism about the health of the U.S. economy and raised confidence that the Federal Reserve will hike interest rates this year.

“It’s a sigh of relief both to the point that the U.S. economy is clearly picking up growth and that the stronger dollar doesn’t seem to be having much of a negative impact on manufacturing,” said Boris Schlossberg, managing director at BK Asset Management in New York.