According to Jinshi Data, Michael Brown, senior research strategist at Pepperstone, said in a report that the US economic outlook is solid compared with other economies, which supports the US dollar.

He noted that the Federal Reserve announced a massive 50 basis point rate cut last month, but other central banks are catching up. The European Central Bank cut interest rates for a second month in a row last week, and the Bank of England is likely to cut rates in November and December after weak U.K. inflation data.

The dollar index hit a two-month high of 103.87 last week and was currently up 0.1% at 103.59.