NEW YORK, Aug. 31 (Xinhua) -- The dollar fell slightly against most major currencies on Monday after strong economic data reduced safety demand.

    The dollar rose in Monday's early trading as falling Asian stocks hit market sentiment in New York. It lost some grounds later after the Chicago purchasing managers index (PMI) turned out to be better than expected.

    The Chicago PMI rose by 6.6 points to 50 in August, according to a survey of corporate purchasing managers. It is the highest level of the index since September 2008. Readings higher than 50 indicate overall business expansion and readings lower than 50 indicate contraction. Economists attributed the strength to the re-start of the U.S. auto industry, aided by the "cash for clunkers" program.

    Although the index has no significant overall economic value by itself, the report did bolster optimism as investors took it as a good sign. The closely watched national manufacturing index of the Institute of Supply Management (ISM), which is due on Tuesday, would be stronger than previous forecasts, analysts said.

    There are other key economic reports coming later this week, including non-farm employment and factory orders. The Federal Reserve will release minutes of its recent monetary policy meeting. The European Central Bank is expected to hold rates at record low levels at its meeting on Thursday. Analysts anticipate that the currency market will fluctuate in wider ranges than in previous sessions.

    The euro bought 1.4329 dollars in late New York trading compared with 1.4287 dollars it bought late Friday. The pound fell to 1.6266 dollars from 1.6269 dollars.

    The dollar rose to 1.0946 Canadian dollars from 1.0931 Canadian dollars, and fell to 1.0596 Swiss francs from 1.0608 Swiss francs.It also fell to 92.99 Japanese yen from 93.60 Japanese yen.

Special Report:  Global Financial Crisis