The gauge of the greenback versus six major currencies pared its initial losses after data showed U.S. producer prices posted the largest monthly rise in more than four years in January, supporting the view that domestic inflation is approaching the Fed's 2 percent goal.
The dollar index reached a three-week high at 101.38, reversing from an earlier drop to 100.90. It was last at 0.3 percent at 101.26.
The greenback hit a two-week peak of 114.47 yen, erasing an earlier decline against the Japanese currency. It was last up 0.5 percent at 114.19 yen.
The euro fell 0.3 percent against the greenback at $1.0574 amid political risk and disappointing regional economic data.
The euro has come under pressure from concerns about France's presidential election and Greek bailout talks. Investors have grown jittery about a possible repeat of Brexit as polls showed National Front leader Marine Le Pen, who has promised to pull France out of the
Investors have grown jittery about a possible repeat of Brexit as polls showed National Front leader Marine Le Pen, who has promised to pull France out of the euro zone and hold a referendum on European Union membership, is leading in the first-round of the French presidential runoff.