The greenback soared to a three-year high of 102.99 against a basket of currencies in March, before ending the year at 89.96, down 6.77pc on the year and 12.65pc from its March high.
Bullion had jumped more than 1pc earlier in the session, helped by reports that U.S. congressional leaders reached agreement on a $900 billion package.
Dutch health technology firm Philips rose 1.3pc after it agreed to buy U.S. cardiac diagnostics and monitoring firm BioTelemetry in a deal worth $2.8 billion.
The EU's chief executive said on Wednesday she could not say if there would be a trade deal with Britain but there had been progress and the next few days would be critical.
The dollar index, which measures the greenback against a basket of currencies, was last at 90.477, after sinking as low as 90.419 on Monday, a level not seen since April 2018.
The pound gained after the UK and European Union agreed on Sunday to continue Brexit talks and the EU's chief negotiator said a deal was still possible.
Britain said the door was still open if the European Union wanted to make some small concessions, but that unless the bloc budged there would be a no-deal exit in 10 weeks.
The currency rose as much as 0.5pc extending its run to a high of $1.3184, its highest since March 9, before easing a touch to $1.3112, up 0.3pc on the day.