The euro struck a six-week high against the dollar after further solid economic data from the 13-nation single currency zone reinforced expectations the European Central Bank will raise borrowing costs at least twice more this year. The purchasing managers' index for the euro zone's manufacturing sector rose in June to 55.6 points from 55.0 in May, beating a provisional estimate and economists' forecasts for 55.4 points. The index showed the sector enjoyed its 24th consecutive month of growth in June, which is indicated by a reading over 50 points. As a result, the euro reached 1.3594 usd, its highest level since May 16. "Although these data are of little focus in terms of monetary policy, they continue to highlight that manufacturing sentiment is healthy and that higher interest rates are not acting to dampen sentiment," said Mitul Kotecha, head of global foreign exchange research at Calyon. "They should not therefore, stand in the way of further interest rate hikes from the ECB over the coming months, and we maintain our view that ECB rates will peak at 4.50 pct by early next year," he added. However, with the US equivalent later today and the jobs report at the end of the week, the positive impact on the euro is likely to be limited, Kotecha added. The ECB is expected to keep its key refi rate unchanged at 4.00 pct on Thursday, the same day that the Bank of England's rate-setting Monetary Policy Committee is forecast to hike its key repo rate by a quarter-point to 5.75 pct.