U.S. Dollar Rises Amid Strong ISM Manufacturing PMI

The U.S. dollar erased its early losses against its major counterparts in the New York session on Monday, as the Institute for Supply Management's manufacturing PMI exceeded expectations in April.

The ISM said its manufacturing PMI rose to 47.1 in April from 46.3 in March, with a reading below 50 indicating a contraction. Economists had expected the index to inch up to 46.6.

The Commerce Department also released a report showing an unexpected increase in U.S construction spending in the month of March.

The greenback recovered to 1.2519 against the pound, 1.0995 against the euro and 0.8942 against the franc, off its early lows of 1.2569, 1.1035 and 0.8914, respectively.

The greenback touched 137.25 against the yen, its highest level since March 9.

The greenback rebounded to 0.6175 against the kiwi, from an early near 2-week low of 0.6199.

The greenback may find resistance around 1.21 against the pound, 1.06 against the euro, 0.92 against the franc, 139.00 against the yen and 0.60 against the kiwi.