Investing.com - The dollar slid lower against a basket of the other major currencies on Monday after data showing that U.S. consumer spending ticked higher last month, but inflation eased.
The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was last down 0.24% at 95.93, off earlier of highs of 96.42.
Trading conditions remained light, with financial markets in Europe closed for the Easter holiday.
Personal spending edged up 0.1% in February the Commerce Department said, in line with economists' expectations.
January's consumer spending was revised down to 0.1% from a previously reported 0.5%.
Personal income rose by a seasonally adjusted 0.2%, above forecasts for a 0.1% gain.
Inflation as measured by the PCE index, the Federal Reserve's preferred inflation measure, dipped 0.1% last month, due in large part to lower energy costs
The PCE index rose just 1% on a year-over-year basis, slowing from 1.2% in January.
The data indicated that the Fed may raise interest rates only gradually this year, despite the tightening labor market.
Another report showed that U.S. pending home sales jumped 3.5% in February to a seven-month high, reversing January's 3% decline.
Investors were looking ahead to a speech by Fed Chair Janet Yellen on Tuesday for fresh indications on the path of interest rates.
Higher interest rates would boost the dollar by making it more attractive to yield seeking investors.
The dollar has strengthened in recent sessions after an upward revision to U.S. fourth quarter growth and hawkish comments by Fed officials bolstered expectations that the central bank may act soon to hike interest rates.
The euro extended gains, with EUR/USD advancing 0.43% to 1.1214, while the dollar pared back gains against the yen, with USD/JPY up just 0.11% at 113.24.
Sterling also added to gains,with GBP/USD up 0.92% to 1.4253, while USD/CHF was down 0.51% at 0.9730.
The Canadian, Australian and New Zealand dollars strengthened, with USD/CAD falling 0.6% to 1.3189, AUD/USD rising 0.49% to 0.7544 and NZD/USD adding 0.54% to trade at 0.6726.