Investor caution was on display ahead of the release of the US NFP jobs report, with most currencies continuing to move flat in the European session.
Against most major currencies, the dollar index traded little changed at around 103.50.
Concerns about the possibility of the US defaulting finally subsided after the Senate passed a bill to raise the debt ceiling at the Asian session.
Now, investors' attention is directed to the US NFP employment data that will be released in the New York session to be used as the next indication of the Federal Reserve's (Fed) policy setting.
The US economy is expected to add 193,000 jobs in May, down from an increase of 253,000 in April while the unemployment rate is projected to rise to 3.5%.
Looking at broader market movements, the euro and the pound traded hovering around the same price as the US dollar moved flat.
In contrast, the Aussie dollar saw a move higher from its six-month low, supported by expectations that Australia's central bank will raise interest rates again next week.
Also showing strength was the New Zealand dollar trading amid improved market sentiment following a resolution on the US debt ceiling issue.
In addition, the dollar loonie also strengthened in line with other commodity currencies, while also receiving support from the recovery in crude oil prices.
