The dollar rose to an eight-month high on Monday, as unusually hawkish comments from a regional U.S. Federal Reserve president over the weekend further cemented expectations of an interest rate hike next month.
San Francisco Fed President John Williams on Saturday cited a "strong case" for raising rates when Fed policymakers meet next month, as long as U.S. economic data does not disappoint. Williams, a voting member of the Federal Open Market Committee, also said the Fed could raise rates in the near term, but should do so at a gradual pace.
His comments overshadowed Monday's lackluster U.S. manufacturing and housing reports.
Data showed on Monday that manufacturing activity slowed to the lowest level since October 2013 and existing home sales declined 3.4 percent last month, but both surveys continued to support long-term stability in the U.S. economy.