The U.S. dollar stayed higher versus the Japanese yen but slipped against other major rivals Monday after a report showed U.S. pending home sales rose in March, buoying hopes that the housing downturn may be ending. The dollar bought 99.49 Japanese yen, versus 99.11 yen in North American trade late Friday. The dollar index , a measure of the greenback against a trade-weighted basket of six major currencies, slipped to 84.16 from 84.54. The National Association of Realtors said pending sales increased 3.2% in March, more than some analysts had anticipated. "This is the second month in a row that pending home sales have increased which adds to the overall belief that we are seeing serious signs of stabilization," said Kathy Lien, director of currency research at Global Forex Trading. The euro was higher, at $1.3342 from $1.3268 Friday, as the dollar resumed its pattern of falling when stocks rally, indicating investors are more comfortable taking on risk. The Dow Jones Industrial Average gained 2.1% in recent trading. "Another Wall Street rally is largely seen behind the softer dollar, as risk appetite remains at more elevated levels," analysts at Action Economics said. The multi-nation currency was also supported by better-than expected manufacturing data, traders said. The pace of slowdown in euro zone manufacturing activity slowed in April, reports said Monday, citing data from the Markit Economics. The purchasing managers' index, or PMI, for the region rose to a six-month high of 36.8 in April from 33.9 in March. It was also an increase from the initial estimate of 36.7. Economists had forecast the PMI to remain at its flash reading. A PMI reading below 50 suggests contraction in the sector British and Japanese markets were closed for holidays, substantially limiting trading activity.

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