The dollar touched a three-month high against the
The greenback was trading around its highest in 2-1/2 weeks against a basket of six major currencies. Traders have been speculating that the next head of the Federal Reserve could take a more hawkish stance on monetary policy.
Renewed expectations of federal tax cuts have also supported the greenback and stoked a rise in U.S. bond yields, with two-year yields reaching a near nine-year peak.
"The common trait is higher U.S. yields. You have the whole Fed chair debate and the fiscal situation," said Alan Ruskin, global co-head of FX strategy at Deutsche Bank in New York.
President Donald Trump said in comments aired on Monday that he would make his choice on the Fed chair "very shortly" and was weighing at least three people: Federal Reserve Governor Jerome Powell, Stanford University economist John Taylor and current Fed Chair Janet Yellen.
Speculators pared net bearish bets on the dollar to their lowest level in more than a month, Commodity Futures Trading Commission data showed on Friday. The dollar index was last up 0.15 percent at 93.84.