The U.S. dollar is near a two-month high as the latest meeting minutes from the U.S. Federal Reserve show that the central bank is considering more interest rate hikes.
The U.S. dollar is also riding high on data released in the last few days that shows the U.S. economy remains resilient.
The U.S. dollar index hit a two-month high of 103.59 before retreating in overnight trading on August 17.
The greenback is gaining support from a recent run of positive U.S. economic data, which has reinforced the view that interest rates will remain high for some time.
Data in recent days showed that U.S. single-family home building surged in July and permits for new construction rose, while a separate report revealed that production at U.S. factories was stronger than expected in July.
At the same time, minutes from the Fed's July policy meeting showed that central bank officials are considering further interest rate increases if inflation, currently at an annualized 3.2%, remains elevated.
Elsewhere, the Japanese yen rose 0.1% higher at 146.14 after weakening to 146.565 per U.S. dollar, its lowest level since November 2022. The Japanese currency has come under scrutiny since it recently touched the key 145 per dollar level for the first time in nine months.
The Australian dollar sank to a nine-month low after data showed that Australia's employment rate unexpectedly fell in July while the jobless rate in that country moved higher.
The Australian dollar was last trading 0.36% lower at $0.6401 per U.S. dollar.
The Euro is trading flat at $1.0875 U.S. after falling to a six-week low at $1.0862 in recent days.
