LONDON—The dollar edged lower on Monday but remained close to Friday’s six-week high, as a recent flurry of positive economic data reinforced market expectations of tighter monetary policy from the Federal Reserve.
The U.S. dollar index, which measures it against six other major currencies, slipped 0.14 percent to 103.83, though is up almost 1.8 percent for the month, keeping it on track for its first monthly gain since last September. It hit a six-week high of 104.67 on Friday.
Liquidity is expected to be thin on Monday, with U.S. markets closed for Presidents’ Day.
A slew of data out of the world’s largest economy in recent weeks pointing to a still-tight labor market, sticky consumer prices, robust retail sales, and higher producer prices, have raised expectations that the U.S. central bank has more to do in taming inflation, and that interest rates would have to go higher….