Entering the European market session, the greenback dollar erased the losses recorded during the Asian session with a positive trade at 93.11 against a basket of major currencies.
Concerns over the surge of new Covid-19 cases in Europe and the United States as well as uncertainty over fiscal stimulus packages and US presidential elections continue to be key factors influencing market sentiment.
The euro continues to struggle to defend its position from falling lower following pressure from concerns over a surge in coronavirus cases in Europe.
German Chancellor Angela Merkel is said to be considering light restrictions in the country after saying the country will face difficult months in the future.
France, Spain, Belgium and the Netherlands are currently struggling with the impact of the second wave of Covid-19, and this will certainly increase the pressure on the European Central Bank (ECB) ahead of this policy meeting on Thursday.
Meanwhile, the pound sterling is also trying to keep from falling lower against the USD amid the latest developments on Brexit trade negotiations to drive price movements.
As for the Asian currency, the Aussie dollar and the kiwi dollar were traded negatively respectively as the US dollar continued to try to erase the losses recorded in the previous session.
The slowdown in the currency market is likely to be due to investors taking precautions ahead of next week's US presidential election.
