The dollar was not far from 10-week highs on Tuesday as U.S.-China trade tensions increased demand for the safe haven, while weak eurozone growth dampened the euro.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, jumped 0.23% to 96.80 as of 11:34 AM ET (15:34 GMT).
U.S. President Donald Trump confirmed on Fox News that he was prepared to increase tariffs on the rest of Chinese goods if no agreement is made between the two countries, but was confident a deal could be reached.
Trump and Chinese leader Xi Jinping are set to meet at the G20 summit in November.
The dollar was also boosted by consumer confidence rising to its highest level in 18 years.
The dollar rose against the Japanese yen, with USD/JPY gaining 0.38% to 112.80. The Canadian dollar was slightly higher, with USD/CAD down 0.02% to 1.3133.
The euro was slightly lower after data showed economic growth in the region had slowed to a four-year low. The currency was under pressure on Monday after news that German Chancellor Angela Merkel is not seeking re-election as head of the Christian Democratic Union party.
EUR/USD inched down 0.08% to 1.1363, not far from a session low of 1.1347.
Sterling was also lower, with GBP/USD down 0.40% to a two-month low of 1.2742 amid Brexit fears ahead of the Bank of England policy decision expected on Thursday.
Elsewhere the Australian dollar was higher, with AUD/USD rising 0.72% to 0.7106 and NZD/USD increasing 0.63% to 0.6563.
