The dollar gained against the euro and the yen on Monday as investors took a bullish view of the U.S. economy, and as the single currency was hurt by a violence-marred independence vote in Spain's Catalonia region.
The greenback was boosted by data showing that U.S. factory activity surged to a more than 13-year high in September amid strong gains in new orders and raw material prices.
"The activity side of the manufacturing ISM is encouraging," said Vassili Serebriakov, currency strategist at Credit Agricole in New York.
"I think the markets pushed the dollar higher because the prices paid index jumped. I think we need to be cautious about that series as its not seasonally adjusted and it could reflect the impact of the recent hurricanes," Serebriakov added.
Proposed U.S. tax code changes and the likelihood of a further interest rate hike in December have lifted the greenback in the past week.