The dollar hit a session high against the Mexican peso on Thursday after Mexico's president, Enrique Pena Nieto, said he would not attend a previously scheduled meeting with Donald Trump.
In a tweet, Pena Nieto said: "This morning we informed the White House that I will not attend a reunion scheduled for next Tuesday" with the U.S. president.
@EPN: Esta mañana hemos informado a la Casa Blanca que no asistiré a la reunión de trabajo programada para el próximo martes con el @POTUS.
Dollar/peso intraday chartSource: FactSet
The greenback also rebounded from a seven-week low, as investor appetite improved with higher global bond yields and stable stock markets around the world, a day after the Dow Jones Industrial Average topped the 20,000 mark for the first time.
In midday trade, the Dow held above 20,000 points and the other main U.S. stock indexes posted minor losses.
"The impression ... is that the Trump reflation trade may be getting back on track," said Shaun Osborne, chief FX strategist, at Scotiabank in Toronto. "The U.S. dollar is benefiting as key short-term yield spreads turn slightly more supportive."
U.S. Treasury yields were a touch higher on the day, while Germany's 10-year bond yields, the benchmark for the euro zone, hit a one-year high of 0.48 percent and France's equivalent hit 1 percent.