Markets are now focused on Friday's U.S. non-farm payrolls report, with investors looking at 200,000 new jobs for November, according to a Reuters poll.
"Tomorrow's jobs report will play a significant factor in keeping the (dollar) rally alive and heightening hopes for an early 2018 rate hike," said Lennon Sweeting, chief market strategist at XE in Toronto.
Against a basket of currencies, the dollar hit a two-week high of 93.745. It was last up 0.01 percent at 93.62. U.S. Senate Republicans agreed to talks with the House of Representatives on sweeping tax legislation on Wednesday, amid early signs lawmakers could bridge their differences and agree on a final bill ahead of a self-imposed Dec. 22 deadline.
"Passage of U.S. tax reform is the main upside risk to economic growth, with far-reaching effects," wrote BofA Merrill Lynch analysts in a 2018 outlook.
But although most investors see the tax reform as a pro-growth policy that should support the dollar, not all analysts agree it would be straightforwardly dollar-positive.
"The corporate tax reform has the potential to have a significantly positive effect on the greenback, but due to other parts of the reform - those that are aimed at preventing tax base erosion," wrote Commerzbank currency strategists in a note to clients.