Investing.com - The dollar moved higher against the yen and the Swiss franc on Monday supported by prospects for an earlier than anticipated U.S. rate hike, while the euro slipped lower after data showed that German private sector activity slowed in March. USD/JPY hit highs of 102.65, and was last up 0.24% to 102.49, not far from last Wednesday’s highs of 102.67. Meanwhile, USD/CHF was up 0.35% to 0.8860. Demand for the dollar continued to be underpinned after markets brought forward expectations for a U.S. rate increase after Fed Chair Janet Yellen suggested last week that a rate hike might come about six months after the bank’s stimulus program ends, which is expected to happen in the fall. Investors shrugged off a report showing that Chinese manufacturing activity deteriorated again in March. The preliminary reading of China’s HSBC manufacturing purchasing managers' index fell to an eight-month low of 48.1 in March from a final reading of 48.5 in February. Analysts had expected the index to tick up to 48.7. Elsewhere, EUR/USD touched lows of 1.3763 and was last down 0.18% to 1.3768, holding just above last Thursday’s two-week lows of 1.3748. The euro slipped after data showed that German private sector activity slowed in March. The data overshadowed another report showing a return to growth in the bloc’s second largest economy, France. The dollar was steady close to five-week lows against the pound, with GBP/USD trading at 1.6491. The Australian dollar shrugged off the weak Chinese manufacturing data, with AUD/USD rising 0.33% to 0.9112. NZD/USD was little changed at 0.8533, while USD/CAD edged up 0.06% to 1.1228. The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.16% to an almost three-week high of 80.41.

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