The dollar index, which measures the greenback against six major peers, increased 0.76 percent at 103.7430.
In late New York trading, the euro fell to 1.0495 U.S. dollars from 1.0578 dollars in the previous session, and the British pound was down to 1.2475 dollars from 1.2597 U.S. dollars in the previous session. The Australian dollar fell to 0.7039 U.S. dollar from 0.7083 dollar.
The U.S. dollar bought 130.15 Japanese yen, higher than 129.45 Japanese yen of the previous session. The U.S. dollar increased to 0.9786 Swiss franc from 0.9712 Swiss franc, and it rose to 1.2901 Canadian dollars from 1.2831 Canadian dollars.
Traders will look to the Fed's two-day policy meeting slated from Tuesday to Wednesday. Fed Chairman Jerome Powell will speak to the press after the central bank issues its statement on Wednesday afternoon.
"This Wednesday's meeting is a big one, with the Fed expected to announce a half-point hike and sketch in more increases to come. Plus, we should get a detailed run-off plan for the Fed's balance sheet," Chris Low, chief economist at FHN Financial, said in a note on Monday.
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