The dollar was slightly lower on Monday after an initial jump following an unexpected increase in U.S. producer prices in April that indicated inflation remained elevated early in the second quarter.

The producer price index for final demand rose 0.5% last month after falling by a downwardly revised 0.1% in March, the Labor Department's Bureau of Labor Statistics said on Tuesday.

The dollar index, which measures the U.S. currency against six rivals, was down 0.05% at 105.12. The euro was up 0.14% against the dollar at 1.080. The dollar strengthened against the yen, up 0.23% at 156.60.

(Reporting by Herbert Lash; Editing by Andrew Heavens)