Positive market sentiment continued to drive the currency at risk to rise higher as the European trading session began.
The market welcomes news of President Donald Trump receiving the start of a transition for Joe Biden's administration taking over the White House, which may include former Federal Reserve (Fed) chairman Janet Yellen as Treasury Secretary.
If Yellen is appointed, this will pave the way for increased government spending led by Biden to drive recovery in the economy hit by the Covid-19 pandemic crisis.
The Aussie dollar soared to a 3-month high at the start of the European session following the weakness of the US dollar even after Deputy Governor of the Reserve Bank of Australia (RBA) Guy Debelle said interest rates were unlikely to rise in 3 years.
The kiwi dollar, on the other hand, continued to rise to a 2-and-a-half-year high after the government asked the central bank to consider including housing price stability as an important factor in monetary policy.
This indirectly drives market confidence that the Reserve Bank of New Zealand (RBNZ) will not lower interest rates negatively.
Meanwhile, euro trading also rose following the fall of the safe-haven dollar. A smoother transition of power facilitates the Biden administration's efforts to revive the US economy.
The pound has risen again to its latest high on Monday, as markets continue to look forward to developments on the Brexit trade negotiations.
On the other hand, the Canadian dollar also gained momentum following the depreciation of the greenback dollar as well as being supported by rising world crude oil prices.
