In the United States, investors are also looking to Wednesday's release of the minutes of the latest Fed monetary policy meeting for confirmation of the market's December rate hike view. The rate futures market has attached a roughly 70 percent probability the Fed will lift rates at the December meeting
That pushed benchmark U.S. 10-year yields to a more than four-month high elevating the dollar against the yen, the currency pair most sensitive to moves in the U.S. government bond market. The greenback has risen in 10 of the last 11 sessions versus the Japanese currency.
"Recent data on jobs, manufacturing and services growth have shown compelling strength that could green light a U.S. rate hike by the end of the year," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.
Speaking to reporters after a speech in Sydney, Chicago Fed President Charles Evans said he "could be fine" with the Fed raising rates in December, but he wanted to see how the economy and inflation progressed before deciding.
Analysts also said the dollar has benefited as Democratic presidential nominee Hillary Clinton widened her lead in opinion pollsover her rival, Republican candidate Donald Trump.