Dollar rises on weak data of Europe, Japan

The dollar rose against most major currencies on Monday as reports showed economic weakness in Europe and Japan.

The latest euro zone provisional PMI indices for the manufacturing and services sectors both fell below 50 to reveal a contraction in economic activity.

The closely watched German Ifo business climate index fell to 101.3 in June from 103.5 in May, worse than expectations.

The weak PMI and Ifo data will fuel concerns about euro zone economic weakness in the months ahead, analysts said.

Sentiment among large Japanese manufacturers on business conditions hit a four-year low in the second quarter, a government survey showed on Monday.

Investors focused on the two-day meeting of the U.S. Federal Reserve, which would begin on Tuesday. Most investors expect Fed policymakers to keep key rate unchanged at 2 percent.

The euro bought 1.5521 dollars in late New York trading compared with 1.5625 dollars it bought late Friday. The British pound fell to 1.9654 dollars from 1.9771 dollars.

The dollar rose to 1.0458 Swiss francs from 1.0346 Swiss francs, and rose to 107.81 Japanese yen from 107.18 Japanese yen.