Investing.com - The dollar was broadly higher against the other major currencies on Monday as expectations that the Federal Reserve will soon start scaling back its asset purchase program underpinned dollar demand.
During European morning trade, the dollar was higher against the euro, with EUR/USD down 0.32% to 1.3025.
The dollar was supported by expectations that the Fed will start to unwind its USD85 billion-a-month bond buying program later this year, while other world central banks will continue to maintain loose monetary policy for the foreseeable future.
The dollar fell sharply last week after Fed Chairman Ben Bernanke said the U.S. economy still needed monetary stimulus.
Elsewhere, the dollar was higher against the pound, with GBP/USD falling 0.35% to 1.5052.
The dollar gained ground against the yen, with USD/JPY climbing 0.49% to 99.72. Markets in Japan remained closed for a national holiday on Monday.
The dollar was also higher against the Swiss franc, with USD/CHF up 0.51% to 0.9509.
The greenback was broadly lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD climbing 0.48% to 0.9091, NZD/USD up 0.32% to 0.7799 and USD/CAD rising 0.21% to 1.0417.
The Aussie and the kiwi were boosted after data showed that Chinese economic growth met expectations in the second quarter, easing concerns over a slowdown in the world’s second largest economy.
Official data showed that Chinese gross domestic product expanded 7.5% in the second quarter from a year earlier, following growth of 7.7% in the three months to March and in line with expectations.
Separate reports showed that Chinese retail sales rose to13.3% on a year-over-year basis in June, up from 12.9% in May, while industrial production declined to 8.9% in June from 9.2% the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.31% to 83.36.
The U.S. was to release official data on retail sales and the Empire State manufacturing index later in the trading day.
