The US Dollar was stronger on Monday following a Federal Reserve survey that revealed US banks reported loan demand weakness and tighter credit standards in Q2, a signal rising rates are impacting the economy.

The US central bank's Senior Loan Officer Opinion Survey, or SLOOS, aimed at consumers and businesses, also revealed banks predict they'll tighten standards further over the remainder of the year.

"Of course, in a higher interest rate environment, you'd expect to see a tightening of lending standards and also a softening of demand," stated Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.

The Dollar index – measuring the currency against six major rivals – increased 0.28% at the time of writing, after only a slight change previously in the trading session, Reuters reports.

Friday's US unemployment report for June will likely be robust, whereas the Consumer Price Index (CPI) due next week for June could reveal an acceleration in inflation for the first time compared to a year ago, Chandler added.

"Some people think it's the tip of the iceberg. Gasoline prices are rising," he said.

Elsewhere, the Euro edged down from early gains as data showed economic growth in Europe edged higher and inflation moved down. The single currency declined 0.2% to $1.0993.

In Japan, losses continued for the Yen as the central bank loosened its grip on interest rates last week. However, the Yen registered its first monthly gains against the greenback since March.

The Dollar rose 0.78% against the Yen at 142.250 following a new intervention by the Bank of Japan on Monday.

Furthermore, Sterling declined 0.13% to $1.2833 but registered a monthly gain of 1.0% ahead of Thursday's Bank of England policy meeting. Markets are split as to whether the bank will announce a 25 or 50-basis point rate rise.