The greenback was flat in the European session as investors took a cautious approach to the publication of the minutes of the FOMC meeting in New York.
Against a basket of major currencies, the dollar index which measures the strength of the greenback firmed around a 2-month high of 103.50.
The strengthening greenback has pressured its main rival to trade lower.
Among the main focus of investors today is the New Zealand dollar which plummeted after the central bank signaled to stop raising rates.
The Reserve Bank of New Zealand (RBNZ) has raised interest rates by 25 basis points to 5.50% at its latest policy meeting.
Meanwhile, the pound showed volatile movements as investors still assessed the latest data which showed UK inflation fell significantly but remained high in April.
Investors are now divided on whether the Bank of England (BOE) will continue to raise interest rates or stop them after seeing the latest data released.
Additionally, the euro touched a two-month low against the greenback with investors now focusing on European Central Bank (ECB) President Christine Lagarde's speech.
In the meantime, investors will continue to follow developments on the US debt ceiling drama that has yet to reach a consensus.
