Most major currencies rose again during the European session amid a lack of progress in discussions on US coronavirus assistance packages causing the market to shift to the giant currency.
So far, Democrats and Republicans are still far behind on state aid and liability for business. The House of Representatives has passed a one-week stopgap bill to give more time to reach an agreement.
Against most major currencies, the greenback dollar remained stable at 91.08, higher than the 2-and-a-half-year low touched last Friday.
Even with the rise of the US dollar, the Asian currency, the Aussie and New Zealand dollars showed the opposite movement.
This can be seen with the movement of the Aussie dollar soaring towards the latest high of more than 2 years it reached on Wednesday. Meanwhile, the kiwi dollar rose 0.2% to 0.70400 against the USD.
This may be driven by market expectations that the Pfizer-BioNTech vaccine will be approved by the U.S. Food and Drug Administration (FDA) today.
Meanwhile, the euro traded steady with relatively limited movement, reflecting investor caution ahead of tonight's decision of the European Central Bank (ECB) policy meeting.
The pound continued to depreciate due to the disappointment of investors who hoped that talks between UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen would reach an agreement.
The two leaders agreed to set a deadline for talks until Sunday.
