The dollar index, measuring the greenback against a basket of six currencies, was 0.27% higher at 90.036. The index hit a four-month low earlier in the session.
"We continue to expect the USD to remain soft while US yields remain contained," Osborne said.
According to IHS Markit "manufacturers highlighted that strain on capacity and raw material shortages are expected to last through 2021." It noted that the supply crunch was raising production costs for manufacturers, who "made efforts to pass higher cost burdens on to clients."
The survey said its measure of new orders increased and that though factories tried to recruit more workers, the pace of hiring was the slowest in five months.
Data firm IHS Markit said on Friday its flash US manufacturing PMI increased to 60.6 in the first half of this month. That was the highest reading since the series started in May 2007 and followed a final reading of 59.1 in March.
Economists polled by Reuters had forecast the index rising to 60.5 in early April. A reading above 50 indicates growth in manufacturing, which accounts for 11.9% of the US economy.
The US yield curve, which has become a barometer of risk sentiment in the bond market, steepened after flattening in the previous session. The spread between US 2-year and 10-year yields rose to 155 basis points.
Trading was quiet to start the week, with most of Europe still on holiday for Easter Monday. China, Hong Kong and Australia were closed as well.
The Commerce Department said on Monday that factory orders dropped 0.8% after surging 2.7% in January. Economists polled by Reuters had forecast factory orders slipping 0.5% in February. Orders increased 1.0% on a year-on-year basis.
Unfilled orders at factories increased 0.8% in February after gaining 0.2% in January, suggesting a rebound in demand in the coming months.
NBS senior statistician Zhao Qinghe said that with China's control of the Covid-19 outbreak, consumer demand returned and "the service industry accelerated its recovery".
The data was in line with economists' forecasts, with a reading above 50 indicating growth in manufacturing, which accounts for 11.9% of the US economy.
The supply chain bottlenecks, which are widespread across the manufacturing sector as well as the services industry, have led to higher prices for inputs, including raw materials.