The dollar hit its highest level against a basket of currencies so far in 2018 as investors increased bets that rising interest rates in the United States would boost the greenback, while traders unwound their bearish positions on the currency.
The index that tracks the dollar against a basket of currencies climbed to 92.974, its highest since December. It was last up 0.21 percent at 92.75.
Speculators trimmed their bets on a falling dollar to the lowest in seven weeks last week, based on data from the Commodity Futures Trading Commission released on Friday.
Friday's somewhat disappointing U.S. payrolls report, which showed hiring and wage growth fell short of expectations, did not alter traders' outlook for further rate increases from the Federal Reserve.
"Nevertheless, the data was still expansionary, showing tepid but positive growth," Boris Schlossberg, managing director of FX strategy at BK Asset Management in New York, said of the April jobs data.
"In contrast, today news from the eurozone only added to the sense of dread in the region as consumer spending slowed materially," he added.
Traders have scaled back expectations on the timing of when the European Central Bank may raise interest rates following a spate of disappointing regional economic readings.