The strengthening of the US dollar continued in the European trading session as the market now turned its attention to the release of the US private sector ADP jobs report.
Earlier, the giant currency gained support from Federal Reserve (Fed) Chairman Jerome Powell's statement on the possibility that interest rates will rise higher than expected.
It also fueled investor expectations that the central bank would implement a 50 basis point hike at its policy meeting this month.
During the European session, the dollar index, which measures the greenback's strength against six major currencies, strengthened to a 3-month high of 105.70.
Investors are now gearing up for the release of ADP employment and job openings (JOLTS) data which will be an indication of the NFP report due out on Friday.
Meanwhile, Powell will still testify before Congress today and investors can follow him for more clues on Fed policy.
Taking a broad look at currency movements, the euro continued to weaken after touching a fresh 2-month low, while the pound remained gloomy at a 4-month low.
The Canadian dollar continued to trade at a 4-month low ahead of the Bank of Canada (BOC) policy meeting in the New York session which is expected to keep interest rates unchanged.
Additionally, the Aussie and New Zealand dollars remained weak at 4-month lows against the greenback.
