Dollar Rises Amid Economic Concern, Eurozone Rate Hike Expectation

NEW YORK, Jun. 6 -- The U.S. dollar rose against major currencies in late New York trading on Monday as sluggish economic data raised concerns about economic growth and investors expected the European Central Bank to raise interest rates next month.

Weak economic data last week raised concerns about the U.S. economic prospects and led to double-dip recession fear. The dollar was bolstered by risk-aversion appetite as investors rushed to seek safe-haven investments.

Meanwhile, as Greece was expected to receive new financial aid package from international organizations in early July, the markets' attentions began to shift to the upcoming European Central Bank (ECB)'s monthly monetary policy meeting on Thursday. It was widely speculated that the ECB would raise interest rates next month. The expectation helped the euro regain some losses against the greenback in late trading session on Monday.

The dollar index, which is regarded as the best gauge of its performance against a basket of six major currencies, rose to 73. 941 from 73.775 on Friday.

In late Monday trading, the dollar bought 80.13 Japanese yen, comparing with 80.26 yen late Friday, and the euro fell to 1.4587 dollars from 1.4624.

The British pound also fell to 1.6352 dollars from 1.6418. The dollar rose from 0.8362 Swiss francs to 0.8368, and also rose to 0. 9806 Canadian dollars from 0.9773.