The dollar hit a new seven-month high against the euro today to extend gains after data bolstered optimism that the United States is able to fund its current account deficit.
Dealers said the greenback was still on a roll after robust US retail sales and employment data lifted the currency through key chart resistance at $1.2730 per euro last week - its high for the year.
The next test will come with US Treasury data this afternoon showing whether the United States attracted enough foreign capital in March to fund its external deficit.
"Data on US payrolls and retail sales were better than expected and a lot of real money investors are coming late to the party," said Adam Myers, foreign exchange strategist at Société Générale.
The dollar also hit a seven-month high against the Swiss franc, a six-month high against sterling and a one-month high against the yen, although its moves in percentage terms were small with a holiday in much of Europe keeping trading volumes light.
The dollar rose as high as $1.2582 per euro in early trade before paring gains to $1.2614 by earlier this morning, little changed from Friday's US close.
The dollar was up 0.3 per cent against the yen at 107.62, just short of earlier one-month highs.