The market has been supported by strong US stimulus prospects and optimistic vaccine news, raising confidence in a faster US economic recovery.
Nevertheless, the greenback dollar continued to outperform its major competitors as higher US bond yields helped offset its demand as a safe-haven.
The dollar index, which measures the strength of the greenback dollar against a basket of major currencies, traded around its 2-month high of 91.09.
Market confidence in the economic recovery translates to an increase in 10-year US treasury yields which strengthened to 1.108% and this supports further strengthening of the greenback dollar.
Market optimism expectations have been backed by efforts in Washington toward implementing larger stimulus packages and vaccination programs that have been running smoothly since President Joe Biden's administration took over.
This situation is contrary to Europe which is expected to record a decline in growth in the first quarter of this year due to ongoing coronavirus restrictions and delays in vaccine launches.
Concerns over the double-dip recession in the European Zone have plagued euro currency trading.
