(Recasts, lead paragraph, updates prices, adds U.S. data,
* U.S. data generally positive
* Euro hits 3-week low of $1.0650
* Investors look to U.S. jobs report on Friday
By Gertrude Chavez-Dreyfuss
NEW YORK, April 3 The dollar rose on Monday,
reversing the previous session's losses, as the currency
benefited from a generally positive U.S. backdrop such as rising
interest rates, at a time when other major central banks are
either on hold or in policy-easing mode.
"We think U.S. fundamentals remain solid, may improve
further still, if the president can make some quick progress on
tax reform," said Shaun Osborne, chief FX strategist at
Scotiabank in Toronto.
He said U.S. interest rates are poised to continue rising
steadily this year, even if Federal Reserve officials said the
Fed is in no particular rush to tighten policy.
U.S. construction spending and manufacturing data on Monday
were positive overall, affirming the economy's steady
improvement. Construction spending grew 0.8 percent to $1.19
trillion, the highest level since April 2006.
The Institute for Supply Management's manufacturing index,
on the other hand, was 57.2 in March, with components such as
the prices paid and manufacturing indexes notching their highest
readings since May and June 2011, respectively.
The dollar's gain has also been helped by the euro's early
struggles on Monday. The euro hit a three-week low against the
dollar mixed economic data coming out of Europe added to
existing worries about political risk in the euro zone.
The single euro zone currency, however, was last up 0.2
percent at $1.0664.
Despite increasing activity at the fastest rate in nearly
six years, euro zone factories struggled to keep up with demand
last month, according to a survey that showed them again hiking
On the political front, France will vote in a two-round
presidential election at the end this month and the start of
May, with investors worried that far-right anti-EU Marine Le Pen
could stage a surprise victory.
The dollar index, meanwhile, was up 0.1 percent at
Markets are focused this week on the U.S. non-farm payrolls
report due Friday for clues on the likely pace of interest rate
Investors are currently pricing in more than a 50 percent
chance the central bank will hike interest rates at its June
meeting, the second of the three increases expected this
"The real focus is going to be in the week ahead given how
much data we have coming out ... which of course is absolutely
key in trying to assess whether we will see another hike from
the Fed in June," said Rabobank currency strategist Christian
Lawrence in London.
(Additional reporitng by Ritvik Carvalho in London; Editing by