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When he takes office later this month, Mr Obama will seek tax cuts of up to £310 billion as part of the package.
David Watt, senior currency strategist at RBC Capital Market in Toronto, Canada, said the announcement of the proposals were the main reason behind the surge in the dollar.
"The package is nothing new, but at least we are getting details about the plan," he said, adding: "That is providing short-term support for the dollar because it caps the economic risk for the US."
Meanwhile, the euro suffered significant losses, falling by more than three cents.
Omer Esiner, a senior market analyst at Ruesch International in Washington, told Reuters the fall was caused by comments by the European Central Bank.
