The dollar rose to an intraday high versus the euro early Thursday in New York after the release of the latest U.S. personal income and spending data. Consumer spending picked up in March by 0.4% compared with the month before - double what was expected even as income slowed and a key gauge of inflation accelerated. The Commerce Department also reported personal income in March increased at a seasonally adjusted rate of 0.3% compared with the month before and the savings rate dipped. Economists had forecast a 0.3% increase in personal income during March and a 0.2% climb in personal consumption expenditures. The core PCE, which excludes food and energy, rose 0.2% in March, after climbing 0.1% in February. Year over year, it climbed 2.1% in March, after increasing 2.0% in February. The Federal Reserve watches this index closely for signs of problematic inflation. The central bank's preferred range for this core gauge is considered to be 1.0% to 2.0% year over year. The dollar consequently rose to its highest level against the euro in more than a month, extending an overnight rally. The euro fell to $1.5465. The dollar also strengthened against the U.K. pound to an intraday high. Sterling fell to $1.9766. "Markets are looking at data for indications that the (U.S. Federal Reserve) may actually pause and this provides some tentative support for a pause," said Matthew Strauss, currency strategist at RBC Capital Markets. The Fed has been lowering interest rates since September, simultaneously cutting the yield of the dollar versus its counterparts. PCE inflation data slightly above market expectations offered some evidence that the hoped for pause may be on track - a welcome sign for currency analysts who were confused by the Fed's language in its policy statement Wednesday.