The dollar rose to a two-week high against major currencies as optimism grew that lawmakers might reach a deal to avert a U.S. debt default.
The dollar rose on Wednesday as news that Federal Reserve Vice Chair Janet Yellen will be nominated as the next chief removed uncertainty in markets.
The dollar remained near its recent eight-month lows as U.S. lawmakers struggled to find a solution to the country's budget and debt problems.
The dollar index rose for the first time in six sessions but was within striking distance of a recent eight-month low investors remained cautious.
The U.S. dollar index fell for a fifth straight session against, hitting an eight-month low, as investors fretted about a U.S. government shutdown.
The euro soared to an eight-month high vs the dollar on Wednesday as ECB President Mario Draghi stuck with the bank's current monetary policy stance.
The dollar traded broadly lower on Tuesday, but came off its deepest lows of the day after robust U.S. manufacturing data offset fears that the U.S. government's first partial shutdown in 17 years would clip the economic recovery.
The euro hit a five month low versus the Swiss franc on Monday as political tensions in Italy escalated, while investors shunned the dollar ahead of a government shutdown.
A broadly weaker dollar hit a 7-1/2 month low against the safe-haven Swiss franc, hurt by wrangling over the U.S. budget and a lack of clarity over the Federal Reserve's stimulus.
The dollar posted slim gains against a basket of currencies on Thursday, but remained weighed by the ongoing U.S. budget impasse.
The dollar fell on Wednesday as concerns about a potential U.S. government shutdown left investors wary.
The euro slipped against the dollar and yen on Tuesday, undermined by German sentiment data that was slightly below expectations.
The euro rose on Monday after German Chancellor Angela Merkel won a third term in office and German, French and euro zone private sector surveys came in better than expected.
The dollar on Friday edged up, helped by comments from Fed officials suggesting a reduction in stimulus could be closer than many thought.
The dollar recovered Thursday after Wednesday's losses following the Fed's decision to keep the stimulus intact, but its prospects remained bleak.
The dollar sank to a seven-month low on Wednesday after the Federal Reserve shocked investors by deciding to continue its massive stimulus program.
The euro rallied vs the dollar Tuesday after a better-than-expected German sentiment survey, but gains were muted before the Federal Reserve meeting.
The dollar fell to a four-week low on Monday after former U.S. Treasury Secretary Lawrence Summers withdrew his name as a candidate to lead the Federal Reserve.
The dollar weakened against the euro and yen as investors adjusted positions ahead of the weekend and next week's U.S. Federal Reserve policy-setting meeting.
The dollar fell from a seven-week high as U.S. bond yields declined and as investors speculated the Fed will be cautious in reducing its stimulus.