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New York - The dollar on Monday advanced against other major currencies, ahead of a busy week of US economic data that could speed a shift towards more restrictive US monetary policy.
Near 21:40 GMT, the euro traded at $1.3299 compared with $1.3336 late Friday.
The dollar rose to ¥96.90 from ¥96.18.
The euro also advanced on the yen, trading at ¥128.84 from ¥128.35.
The dollar has been weaker weak since mid-July, and that was reinforced by a disappointing August 2 US jobs report which suggested the Federal Reserve might delay plans to scale back its aggressive bond-buying programme.
Market watchers see a chance in this week's stream of US economic data to revive the debate on Fed tapering. US retail sales data are released Tuesday. There will also be releases later in the week on housing starts, US industrial production and inflation.
"With a stronger calendar expected for the week ahead, traders may have begun positioning for outperformance by the US dollar to start the week," said Christopher Vecchio of DailyFX.
"Certainly, if US economic data picks back up, the QE3 taper trade may come back in full force."
Kathy Lien, managing director at BK Asset Management, rated Tuesday's retail sales report as "exceptionally important" given the significance of consumer spending to the US economy and the Fed's outlook.
Retail spending growth needs to exceed 7% to really boost the dollar, Lien said.
If it comes in only at 3 or 4%, "investors will remain confused which will not help the dollar, because it leaves the market unclear about whether the US economy can handle a reduction in stimulus at this time", Lien said.
Among other currencies, the British pound bought $1.5462, down from $1.5503 on Friday.
The dollar rose to 0.9260 from 0.9228 Swiss franc.
Near 21:40 GMT, the euro traded at $1.3299 compared with $1.3336 late Friday.
The dollar rose to ¥96.90 from ¥96.18.
The euro also advanced on the yen, trading at ¥128.84 from ¥128.35.
The dollar has been weaker weak since mid-July, and that was reinforced by a disappointing August 2 US jobs report which suggested the Federal Reserve might delay plans to scale back its aggressive bond-buying programme.
Market watchers see a chance in this week's stream of US economic data to revive the debate on Fed tapering. US retail sales data are released Tuesday. There will also be releases later in the week on housing starts, US industrial production and inflation.
"With a stronger calendar expected for the week ahead, traders may have begun positioning for outperformance by the US dollar to start the week," said Christopher Vecchio of DailyFX.
"Certainly, if US economic data picks back up, the QE3 taper trade may come back in full force."
Kathy Lien, managing director at BK Asset Management, rated Tuesday's retail sales report as "exceptionally important" given the significance of consumer spending to the US economy and the Fed's outlook.
Retail spending growth needs to exceed 7% to really boost the dollar, Lien said.
If it comes in only at 3 or 4%, "investors will remain confused which will not help the dollar, because it leaves the market unclear about whether the US economy can handle a reduction in stimulus at this time", Lien said.
Among other currencies, the British pound bought $1.5462, down from $1.5503 on Friday.
The dollar rose to 0.9260 from 0.9228 Swiss franc.
