The dollar remained close to five-year highs against the other major currencies on Monday, after disappointing U.S. housing data as expectations for a U.S. rate hike next year continued to support demand for the greenback.

Trading volumes were expected to remain light this week with many investors away for the Christmas holiday and ahead of the New Year's holiday.

Industry data showed that existing home sales dropped by 6.1% in November to 4.93 million units from a revised total of 5.25 million the previous month. Analysts had expected existing home sales to slip 0.9% last month to 5.19 million units.

But the dollar remained broadly supported after the Federal Reserve signaled last week that it was on track to raise interest rates next year but said it was taking a patient stance.

The central bank also acknowledged the improvement in the U.S. labor market and noted that the economy is making progress toward its goals in inflation and employment.

The U.S. dollar index, which measures the greenback against a basket of six major currencies, was down 0.08% at 89.77, not far from Friday's five-year high of 89.88.

EUR/USD rose 0.25% to 1.2257, off two-year lows of 1.2222 hit overnight.

In a report, Eurostat said its index of consumer confidence for the euro zone improved to minus 10.9 this month from minus 11.5 in November, whose figure was revised from a previously estimated minus 11.6.

Analysts had expected the index to improve to minus 11.0 in December.

Earlier Monday, official data showed that German import prices dropped 0.8% in November, compared to expectations for a 0.5% loss, after a 0.3% downtick in October.

The dollar pulled away from two-year highs against the Swiss franc, with USD/CHF down 0.21% to 0.9819, while USD/JPY climbed 0.44% to 119.96.

The Russian ruble remained higher, with USD/RUB down 5.35% to 55.75, as it continued to gain support ahead of major month-end tax payments in Russia.

The ruble hit record lows last week after a surprise interest rate hike failed to ease selling pressure on the currency from falling oil and western sanctions.

Elsewhere, the pound held steady, with GBP/USD at 1.5617.

The Australian dollar edged closer to four-and-a-half year lows, with AUD/USD at 0.8138, while NZD/USD was almost unchanged at 0.7737. USD/CAD added 0.24% to 1.1631.