The beginning of the Asian session saw the greenback dollar slightly lower from the one-month high reached in the previous session, while the major currencies began to record gains.
The dollar index traded hovering around 90.63 at the start of Asian session trading, having jumped to 90.94 for the first time since late December.
The risk-sensitive currencies, the Australian and New Zealand dollars traded higher against the US dollar as the market's main focus today focused on the testimony of Treasury Secretary Janet Yellen before the Senate Finance Committee.
According to the completed statement, Yellen will tell the committee that the government needs to take big action in the next Covid-19 aid package.
Meanwhile, the euro began to climb higher after falling to a six-week low with market focus now on the publication of a report on German ZEW economic sentiment today.
The European Zone Finance Minister promised to continue to provide fiscal support for the economy and discuss recovery plans after the European Commission warned that the Covid-19 crisis caused the bloc's economic imbalance.
The pound also rose after President Donald Trump issued an order to lift the ban on European and UK citizens from January 26.
Meanwhile, the Canadian dollar rose slightly after falling to a one-week low following reports that President-elect Joe Biden would revoke approval for the Keystone Pipe XL pipeline construction project, on his first day at the White House.
