The dollar rallied to a seven-month high against the euro on Monday after a run of surprisingly upbeat data eased worries that the United States may not attract enough capital to fund its huge external deficit. An above-consensus rise in new jobs and retail sales in April and a narrower-than-expected trade deficit in March have fueled buying in the dollar, pushing the single European currency below its major support level this year. "Investors had preferred the euro. But now they are shifting some of their funds back to the dollar," said Takehiko Jimbo, a forex sales manager at Mitsubishi Trust and Banking. The euro fell as far as $1.2582 -- its lowest level since Oct. 21. The dollar has gained around 8.4 percent against the euro since it hit a record low at the end of December. The U.S. currency also struck a one-month high of 107.52 yen, up 5.7 percent from a five-year low hit on Jan. 17. Dollar bulls see the overall rally continuing, as an upbeat performance of the U.S. economy compared with other economies boosts expectations for the Federal Reserve to keep raising interest rates, helping to lure more funds to dollars.