U.S. pending home sales rose in March, marking the first gain in the past nine months. The National Association of Realtors said the pending home sales index rallied 3.4 percent to 97.4 from an upwardly revised 94.2 in February.

 

Moreover, a report released by the Federal Reserve Bank of Dallas showed that Texas factory activity increased for 12 months in a row by April. The production index, a key measure of state manufacturing conditions, increased from 17.1 to 24.7, the highest level in four years.

 

Meanwhile, the euro hit a two-week high versus the U.S. dollar as media report quoted European Central Bank President Mario Draghi as saying that quantitative easing isn't imminent.

 

Although the United States launched new sanctions on Russia Monday, there was no notable sign that tensions over Ukraine was escalating and the safe-haven Japanese yen retreated.

 

Investors are also looking to the Federal Reserve's two-day policy meeting starting Tuesday and a slew of important economic data, including the Commerce Department's preliminary estimate of U.S. gross domestic product in the first quarter scheduled to be announced Wednesday and the Labor Department's non-farm payrolls report for April to be released Friday.

 

In late New York trading, the euro rose to 1.3853 U.S. dollars from 1.3837 dollars of the previous session, and the British pound increased to 1.6812 U.S. dollars from 1.6801 dollars. The Australian dollar dropped to 0.9253 U.S. dollar from 0.9269 U.S. dollar.

 

The U.S. dollar bought 102.43 Japanese yen, higher than 102.13 yen in the previous session. The greenback moved down to 0.8800 Swiss franc from 0.8809 Swiss franc, and it went down to 1.1027 Canadian dollars from 1.1039 in the previous session.