Uncertainty over Greece aid details and U.K. election color currency trading NEW YORK (MarketWatch) -- The dollar traded higher Monday, benefiting from unexpectedly good U.S. economic data, while the euro came under pressure after euro-zone finance ministers downplayed expectations for a detailed Greek aid plan. The dollar index (DXY 80.11, +0.27, +0.34%) , which measures the U.S. unit against a trade-weighted basket of six major currencies, stood at 80.116, up from 79.830 late Friday. The euro declined to $1.3710, down from $1.3760 in North American trading late Friday. The British pound fell 1% to $1.5061. The dollar also traded at 90.69 Japanese yen, up from 90.51 yen late Friday. The greenback gained support from data showing more strength in the U.S. economy than many analysts anticipated. A report later is expected to show home builders' confidence improved this month. The Federal Reserve Bank of New York's Empire State manufacturing index slipped to 22.9 in March from 24.9 in February, but this was slightly better than some had expected. A separate report from the Federal Reserve said industrial production unexpectedly increased 0.1% in February, gaining in spite of the effect of a string of massive snowstorms. See story on industrial output. Also, the Treasury Department said net foreign holdings of equities, notes and bonds increased a net $19.1 billion in January. International demand for U.S. debt rose almost as much as in the prior month, while private purchases increased by more than in December. See story on foreign capital report. A weaker tone in equity markets following a warning by credit-rating agency Moody's Investors Service over U.S. and British debt levels provided some general support for the dollar, analysts said. The Standard & Poor's 500 Index (SPX 1,147, -2.94, -0.26%) fell 0.2% in early trading Monday. Read about the Moody's report. Since last year, the dollar has tended to benefit from safe-haven buying when equities slip, while falling when equities rise. Reversal for the euro The euro (CUR_EURUSD 1.3700, -0.0066, -0.4794%) had ended last week on a strong note amid talk of a package of loan guarantees or other aid to be extended by euro-zone countries for debt-burdened Greece. News reports over the weekend said euro-zone officials were close to an agreement on some form of aid package. But finance ministers, including France's Christine Lagarde and Germany's Wolfgang Schaeuble, indicated no details would be forthcoming at Monday's monthly meeting of euro-zone finance ministers. Read story about Greece aid plan. The ministers' "latest tactic seems to be talking up confidence in the euro to avert a speculative assault on the common currency," said Brian Dolan, chief currency strategist at forex.com. "Look for euro-supportive rhetoric from the ministers." As for sterling, it came under selling pressure as a result of the Moody's rating report as well as polls that continue to show U.K. elections, expected on May 6, could result in a hung parliament, strategists said. The pound's pullback "should limit selling pressures for now, but sterling will remain exposed to big swings" in the days leading up to the election, wrote strategists at UniCredit in Milan. With the dollar higher on the pound, the euro also rose, up 0.5% to 91.19 pence. Yuan back in spotlight Meanwhile, China's premier rebutted arguments that the yuan is undervalued and should appreciate, saying other countries shouldn't pressure Beijing about the mainland's exchange-rate policy. See full story on China yuan comments. Wen Jiabao, speaking Sunday as the Chinese legislature's annual meeting ended, nonetheless did not rule out the possibility that the yuan could rise in value and reiterated that the country would continue to reform its currency system, according to reports.

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