Dollar climbs following upbeat data; Greece talks eyed
By Chuck Mikolajczak
NEW YORK (Reuters) - The U.S. dollar gained on Monday after a round of economic data kept expectations alive for an interest rate hike from the Federal Reserve this year, while the euro fell on worry about Greece's financial crisis and soft euro zone data.
The strengthening dollar weighed on oil prices, which were also dented by expectations OPEC production would remain high.
U.S. stocks closed modestly higher in a choppy session as a deal by Intel Corp (INTC.O: Quote) to acquire Altera for $16.7 billion helped lift the technology sector.
While data showed U.S. consumer spending remained flat in April, construction spending and manufacturing picked up steam, holding views steady that the Fed will begin to hike interest rates by the end of the year.
"Investors are concentrating on some of the good economic news we had today, referring to the ISM manufacturing and construction spending, which was rather strong," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.
"That is what is propelling stocks higher on this first day of the new trading month."
Boston Fed President Eric Rosengren, a non-voting member of the central bank, said that while he would like to normalize rates as soon as possible, current U.S. economic conditions do not warrant a rate hike at this time, with the Greek debt crisis and a slowdown in China also concerns.
The data also sent yields on U.S. debt higher, as U.S. 10-year notes US10YT=RR fell 25/32 in price to yield 2.1811 percent. Continued...