The anticipation that the US Federal Reserve will raise interest rates in the future buoyed the greenback hold steady on Monday, though the news that a debt ceiling agreement had been reached attracted some safe-haven buyers away from the dollar.

Inflation climbed and consumer spending increased more than anticipated in the United States in April, according to data released on Friday, adding to the indications of a still-viable economy.

The news caused a spike in Treasury yields, with the two-year yield, which normally represents expectations for short-term interest rates, soaring to a more than two-month high of 4.639% on Friday.

The probability that the Fed will increase interest rates by 25 basis points in June has increased from about 26% to 62%, according to the money markets.

EUR/USD climbed by 0.02% to $1.0735.

GBP/USD slid 0.01% to $1.23495.

USD/JPY touched the highest level in six months at 140.91 yen and was gearing towards 3% monthly gains.