According to NDTV,
The biggest economy in Europe, Germany, was officially declared to be in a recession on Thursday, which caused the euro to fall. Meanwhile, the dollar reached a two-month high as demand for safe haven assets increased amid growing concerns about a US default.
Fitch, a ratings agency, recently expressed its latest concern by placing the United States "AAA" debt ratings on "negative watch," which signals the possibility of a downgrade should Congress be unable to reach an agreement to raise the debt ceiling.
With only one week left until the June 1 "X-date," when the Treasury has warned it wont be able to pay all its obligations, a resolution to the sluggish debt ceiling talks has ironically helped the dollar.