A solid economic outlook in the U.S. compared with economies elsewhere supports the U.S. dollar, said Michael Brown, senior research strategist at Pepperstone in a note.
The Federal Reserve announced a large 50 basis-point interest-rate cut last month but other central banks are catching up, he said.
The European Central Bank cut interest rates for a second month running last week and the Bank of England could reduce interest rates in both November and December after weak U.K. inflation data.
The DXY dollar index was rising 0.1% to 103.592. The DXY index hit a 2.5-month high of 103.874 last week.