The dollar, meanwhile, touched its highest in two weeks versus the yen at 123.68 yen and was last up 0.23 percent at 123.18 yen.
Investors also digested the latest edition of the Fed's Beige Book, which stated the central bank sees economic activity improve at a modest pace in most regions.
Earlier in the session, U.S. private sector employment data also bolstered expectations of a rate increase this month.
U.S. private employers added 217,000 jobs in November, higher than forecast and the most since June.
The data came after a soft inflation reading from the euro zone bolstered bets that the European Central Bank would cut rates deeper into negative territory when it meets on Thursday, weighing on sentiment on the euro.
Anticipated Fed rate hikes are expected to boost the dollar by driving investment flows into the United States. The divergence in monetary policy between the ECB and the Fed boosted the dollar and hurt the euro, said Boris Schlossberg, managing director at BK Asset Management in New York.
"The ADP data confirm that the labor market data in the U.S. is healthy and robust," Schlossberg said. "That puts a December rate hike on track."
He also said there would be "massive pressure" on the ECB to expand its stimulus program.