U.S. Dollar Advances After PMI Data, Fed Bullard's Comments

The U.S. dollar climbed against its most counterparts in New York deals on Monday, as the U.S. manufacturing activity expanded more than expected in October and the St Louis Federal Reserve President James Bullard reiterated the call for an interest rate hike in this year.

Data from IHS Markit showed that U.S. preliminary manufacturing PMI rebounded to 53.2 in October, from a three-month low of 51.5 in September. The rate of improvement was the highest since October 2015.

Speaking on economy and monetary policy at the Association for University Business and Economic Research in Arkansas, St. Louis Fed President James Bullard said that a single 25 basis point hike in the benchmark interest rate would get the monetary authority very close to the level recommended by a so-called Taylor-type policy rule.

The greenback strengthened to a 1-week high of 104.24 against the Japanese yen, from a low of 103.72 hit 2:45 am ET.

The greenback rose back to 1.0877 against the euro, off its early low of 1.0900.

The greenback reversed from an early low of 1.2249 against the pound, with the pair rising back to 1.2210.

If the greenback extends rise, it may find resistance around 106.00 against the yen, 1.07 against the euro and 1.20 against the pound.