The dollar strengthened on Tuesday following the release of stronger-than-expected data from the United States. The U.S. Producer Price Index, which measures inflation pressures before they reach the consumer, rose 1.1 percent in March, following a 0.3 increase in February. This was below expectations for a slower rise of 1.8 percent. Meanwhile, the New York Federal Reserve Bank's Empire State Manufacturing Index unexpectedly rose by nearly 23 points to 0.63 in April, up from the record low -22.23 reached in March. Economists were only expecting a small improvement to -16.00. The better-than-expected data added to the woes of the pound and the euro, which have already been under pressure against the dollar following poor data in the United Kingdom and within the euro zone. Following the U.S. data, the dollar rose to a high of 1.5784 per euro, from 1.5833 prior to the release of the data, and to a high of 1.9626 to the pound, from 1.9664 previously. The dollar extended gains Tuesday morning versus its key rivals after the release of a Treasury Department report that showed foreign confidence in U.S. assets remains upbeat.