The dollarrose to a near three-week high against a basket of currencies on Monday, lifted by hopes of U.S. tax cuts to stoke corporate profits and investments, as well as bets on whether the Federal Reserve may raise interest rates more quickly.
The greenback last week booked its strongest gain since mid-December after U.S. President Donald Trumpon Thursday promised a "phenomenal" tax plan that the White House said would include tax cuts for businesses and individuals.
Investors hope Trump's promise of a tax plan signals that the focus of the president and his aides is shifting away from trade protectionism and security, and toward policies that promote economic growth.
"People seemed to be more comfortable with the fiscal policy outlook. It's been friendly for stocks and also for the dollar," said Thierry Albert Wizman, global interest rates and currencies strategist at Macquarie Group in New York.
The dollar index, which measures the greenback against six other currencies, reached 101.11, its strongest level since Jan. 20. It was last up 0.14 percent at 100.94.
The dollar advanced to a two-week peak against the yen following reports that Trump did not discuss the currency or its strength during weekend talks with visiting Japanese Prime Minister Shinzo Abe. The dollar was last up 0.35 percent at 113.59 yen.