The U.S. dollar appreciated against its major counterparts in the European session on Monday, as strong economic data allayed fears about a slowdown in the U.S. economy.
Data on Friday showed that U.S. housing starts jumped 16.9 percent in December to the highest level since 2006.
The data came on the heels of solid retail sales for December and Philadelphia Fed manufacturing survey for January.
The data reinforced hopes that the U.S. Federal Reserve is unlikely to cut rates when it meets at the end of the month.
Investors awaited key risk events including meetings from central banks of Japan, Canada and Europe and the World Economic Forum in Davos due this week.
Analysts expect the ECB, the BoJ and the BoC to keep rates unchanged amid easing trade tensions.
The currency held steady against its most major counterparts in the previous session.
The greenback rose to a 5-day high of 0.6596 against the kiwi and a 10-day high of 0.6859 against the aussie, from Friday's closing values of 0.6609 and 0.6873, respectively. The greenback is likely to locate resistance around 0.645 against the kiwi and 0.67 against the aussie.
The greenback appreciated to 1.3073 against the loonie, from a low of 1.3055 seen at 2:00 am ET. On the upside, 1.32 is possibly seen as the next resistance level for the greenback.
The greenback strengthened to 1.1081 against the euro, its strongest level since December 24. If the currency rises further, it may locate resistance around the 1.09 level.
Data from Destatis showed that Germany's producer prices declined at a slower pace in December.
Producer prices fell 0.2 percent year-on-year, slower than the 0.7 percent decrease seen in November. This was also slower than the 0.3 percent fall economists' had forecast.
The U.S. currency hit a 6-day high of 1.2962 against the pound, compared to last week's closing value of 1.3005. The greenback is seen finding resistance around the 1.27 mark.
Data from property website Rightmove showed that UK house prices increased the most for the month of January after the general election.
House prices increased 2.3 percent in January, the highest since the record started in 2002.
The greenback was trading at 110.19 versus the yen, up from a low of 110.07 hit at 5:00 pm ET. Next key resistance for the greenback is likely seen around the 112.00 level.
Data from the Ministry of Economy, Trade and Industry showed that Japan industrial production declined slightly more than initially estimated in November.
Industrial production fell by a seasonally adjusted 1.0 percent month-on-month November. According to the initial estimate, production had declined 0.9 percent.
The greenback rallied to 0.9694 against the franc, after falling as low as 0.9674 in the previous session. Further rally may take the greenback to a resistance around the 0.99 region.
U.S. markets are closed in observance of Martin Luther King Jr. holiday.