The greenback continued to extend its rally by surging higher at the opening of the European session.
Developments on the debt ceiling issue continue to influence market sentiment where the latest meeting between US President Joe Biden and Congress' top policymakers ended on an optimistic note.
Speaker of the House of Representatives Kevin McCarthy said there was a possibility that an agreement could be reached by the end of this week.
Following the strengthening of the US dollar, most major currencies continued to trade lower.
This was reflected in the Aussie dollar trading to a one-week low, failing to capitalize on Australian wage growth data readings that remained strong in the first quarter.
The kiwi dollar held back from falling, after being supported by expectations for further interest rate hikes from the Reserve Bank of New Zealand (RBNZ).
In addition, the euro depreciated further as the market paid attention to the European Central Bank's (ECB) policy maker's statement on the outlook for the next monetary policy.
The pound also fell lower ahead of Bank of England (BOE) Governor Andrew Bailey's speech at the European session.
Meanwhile, the Canadian dollar also slipped, failing to maintain its gains on the back of stronger Canadian inflation data.
