The dollar rose, on Tuesday, by 1.2 percent to hold above a three-year low struck last week, but fears of a US fiscal deficit overshadowed currency expectations.
The dollar index, which tracks the performance of the greenback against 6 major currencies, hit 89,347, beating a three-year low of 88.251 on Friday.
The dollar has fallen in recent months, as factors pushing downward have dampened the positive momentum of higher US interest rates.
The dollar is also undermined by growing fears of a US budget deficit expected to swell to more than $ 1 trillion in 2019 as government spending increases and corporate tax cuts are cut.
Against the yen, the dollar rose 0.2 percent to 106.77 yen, and the euro fell 0.2 percent to $ 1.2387, down from a three-year high of $ 1.2556 on Friday.
