U.S. dollar loses despite better economic data

NEW YORK, June 26 (Xinhua) -- The U.S. dollar weakened on Monday as traders were worried that the Fed's rate hikes would put too much pressure on the economy.

The dollar index, which measures the greenback against six major peers, was down 0.21 percent to 102.6936 in late trading.

Federal Reserve Bank of New York President John Williams noted on Sunday that "restoring price stability is of paramount importance because it is the foundation of sustained economic and financial stability. Price stability is not an either/or, it's a must have."

The Dallas Fed Manufacturing Index improved from -29.1 in May to -23.2 in June, compared to analysts' forecast consensus of -26.5, according to the Dallas Fed Manufacturing Index report released on Monday. The U.S. dollar picked up shortly before it declined again.

The Dallas Fed Manufacturing Index report exceeded expectations but did not provide material support to the American currency, noted Vladimir Zernov, analyst with market information supplier FX Empire. Zernov added that traders waited for additional catalysts on Monday.

In late New York trading, the euro increased to 1.0915 U.S. dollars from 1.0891 dollars in the previous session, and the British pound increased to 1.2721 U.S. dollars from 1.2707 dollars in the previous session.

The U.S. dollar bought 143.4470 Japanese yen, lower than 143.7940 Japanese yen of the previous session. The U.S. dollar decreased to 0.8949 Swiss franc from 0.8972 Swiss franc, and it decreased to 1.3145 Canadian dollars from 1.3188 Canadian dollars. The U.S. dollar decreased to 10.7211 Swedish Krona from 10.7255 Swedish Krona.