The dollar index, which measures the greenback against a basket of six currencies, hit a session high of 99.70, its highest since mid-April, and was last up 0.17 percent.
Almost all major currency trading banks are forecasting a decline to parity in the euro against the dollar in the months ahead, but the past two weeks have proved be stickier for the dollar than some expected. Options markets also point to substantial barriers to further gains between current levels and March and April highs around $1.0450.
In a note overnight, CitiFX head of G10 FX strategy, Steven Englander, laid out a handful of risks to current market pricing from Wednesday's Federal Open Market Committee policy meeting minutes.
"The big risk is that the minutes convey that many FOMC members are less convinced on a December hike than the market now thinks and could easily be swayed by market uncertainty or other events to wait another couple of meetings," he said.
In sharp contrast with the Fed, the European Central Bank is considered very likely to expand or extend its quantitative easing program next month, while potentially also cutting deposit rates, which is keeping the euro under pressure.
Sterling bounced back from initial losses to trade up 0.08 percent against the dollar on the day at $1.521.