And US Treasury Secretary Janet Yellen warns the federal government may not have enough money to pay all of its obligations by June 1.
Investors are largely turning away from riskier investments after a new round of talks between the White House and Republicans on Tuesday to raise the debt ceiling ended with no sign of progress.
The price change
The dollar index, which measures the greenback against six rival currencies, hit 103.51 in early trading in Asia, a level just below the two-month high the index touched overnight. next day at 103.65. The index rose almost 2% in May.
The yen settled at 138.58 to the dollar, after hitting a six-month low of 138.91 overnight, while the pound rose 0.11% to $1.2424 during the day. the last session, according to Reuters data.
The Australian dollar also settled at $0.6610.
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