The safe-haven US dollar remained strong against most major currencies at a two-week high, while treasury yields slipped lower.
The dollar index, which measures the strength of the greenback against six other major currencies, traded higher at 92.38.
The benchmark 10 -year U.S. treasury yield fell to around 1.60% after Federal Reserve (Fed) Chairman Jerome Powell told that the central bank saw only a temporary rise in inflationary pressures.
Bond yields no longer seem to support the strength of the USD, in fact it is gaining strength as a safe-haven amid risk-off sentiment.
The euro traded weaker after being weighed down by a strong greenback dollar, as well as being weighed down by concerns over a third wave of coronaviruses in Europe amid a slowdown in vaccinations.
Germany and the Netherlands have announced an extension of its current closure until mid -April.
Meanwhile in the UK, mixed employment data has weighed on pound trading. Although the unemployment rate recorded an encouraging reading, but at the same time unemployment claims were very high and the average income index failed to surpass expectations of an increase.
Commodity -linked currencies displayed their worst performance, with the kiwi dollar losing more than 2% of its value after the New Zealand government intervened in the housing market.
The Aussie dollar followed the lower kiwi dollar as well as it was also squeezed by the latest tensions between the United States and China which also linked the European Union (EU) and the UK in the dispute.
