Investing.com - The euro fell to session lows against the dollar on Monday after data showed that manufacturing activity in the U.S. expanded at a faster rate than expected in February, while concerns over the crisis in Ukraine also continued to support demand for the dollar.
EUR/USD hit lows of 1.3747 and was last down 0.35% to 1.3753.
The pair was likely to find support at 1.3730 and resistance at 1.3800.
The dollar was boosted after the Institute for Supply Management reported that its manufacturing purchasing managers’ index rose to 53.2 last month from 51.3 in January, ahead of forecasts for an increase to 52.0.
The report attributed the rise to an increase in new orders after bad weather caused disruption at the start of the year.
The euro remained under pressure as escalating tensions over the unfolding crisis in the Ukraine sparked a broad based selloff in risk assets, following Russian President Vladimir Putin’s decision to send troops into the Crimea region over the weekend.
Ukraine's interim government has called for more international support to force Russian troops to leave.
The move sparked fears that the West will impose sanctions on Russia. Russia’s central bank hiked interest rates from 5.5% to 7% on Monday, after the rouble fell to new record lows against the euro and dollar.
In the euro zone, data on Monday confirmed that the region’s manufacturing purchasing managers’ index declined to 53.2 in February from 54.0 in January. It was the first dip in five months, highlighting the fragile nature of the recovery in the euro area.
The rate of decline in France’s manufacturing sector eased in February, while activity in Germany’s manufacturing sector rose for the eighth straight month.
The single currency’s losses were held in check after euro zone inflation data late last week eased pressure on the European Central Bank to tighten monetary policy at its upcoming meeting on Thursday.
The euro was lower against the broadly stronger yen, with EUR/JPY down 0.71% to 139.47.
The common currency fell to its lowest level in more than a year against the Swiss franc, with EUR/CHF hitting lows of 1.2103, the weakest since January 2013, before pulling back to 1.2124.
The euro was also lower against the pound, with EUR/GBP slipping 0.11% to 0.8224.
Sterling found support after data on Monday showed that the strong upswing in the U.K. manufacturing sector continued in February, with jobs growth in the sector accelerating to a 33-month high.
The Markit U.K. manufacturing PMI for February came in at 56.9, up from a revised 56.6 in January. Analysts had expected the index to tick down to 56.5.