(RTTNews) - The dollar firmed against the euro and most major rivals Monday morning, as focus shifted back to Europe's unresolved sovereign debt dilemma.
With traders unsure about whether the dollar or euro is the uglier asset, the Swiss franc has become the most fashionable currency.
Pressured by Germany and the International Monetary Fund, euro zone governments are now considering imposing a levy on banks to involve private creditors in Greek rescue, Germany's Die Welt newspaper reported on Monday.
According to the paper, the bank levy will also be valid for financial institutions in the Euro zone that are not directly engaged in Greece.
The European Central Bank has insisted that private sector would imperil the region's banks.
The dollar rose to $1.4025 against the euro, edging back toward a 4-month high of $1.3836 set a week ago.
For a third day there was little movement against the yen, with the dollar holding just above Y79.
The dollar crawled higher to CHF 0.8175 versus the Swiss franc, away from a record low of CHF 0.8078.
Traders downplayed Friday's troubling news on the mindset of American consumer.
U.S. consumer sentiment has shown a substantial deterioration in the month of July, according to a preliminary report from Reuters and the University of Michigan, with the consumer sentiment index falling to its lowest level since March of 2009.
Looking at today's economic calendar, the National Association of Homebuilders is scheduled to release the results of its July survey on homebuilders' confidence at 10 am ET. The consensus estimates call for a modest uptick in the index to 14 after it declined to 13 in June, with the June reading representing its lowest level since September.
Later in the week, the markets may closely watch the Commerce Department's housing starts report for June, the National Association of Realtors' existing home sales report for June and the National Association of Home Builders' housing market index for July.
Additionally, the weekly jobless claims report and the Philadelphia Federal Reserve's manufacturing survey for July could also draw traders' attention.
