The US dollar continued to move higher as markets turned their attention to key economic data due this week.
The opening of the European session saw the dollar index hit a new two-month high before retreating slightly to around 104.30 against a basket of major currencies.
Although an agreement on the debt ceiling issue was reached, the US dollar continued to strengthen as it also signaled that the US was safe from experiencing a major economic crisis.
With the progress achieved, the main focus of the market is now directed to the US NFP employment report which will be used as the next indicator for the Federal Reserve (Fed) policy setting.
Stealing the spotlight on the European session was news of an emergency meeting between the Ministry of Finance, the Bank of Japan (BOJ) and the Financial Services Agency.
However, there is still no latest development on what was discussed in the meeting so far.
Following the report, the yen rose slightly against the US dollar after slipping to a new six-month low earlier in the session.
Meanwhile, the euro dropped to a new two-month low against the greenback, while the pound remained at a one-month low.
The Aussie dollar held on to its gains despite price volatility, while the kiwi dollar continued to weaken.
In the upcoming New York session, investors may pay attention to US consumer confidence data which is expected to decline in May.
