The greenback dollar remained strong near a two -year high as investor confidence for a more aggressive interest rate hike continued to rise.
The 10 -year U.S. treasury yield also soared near the 2.5%level, adding support for the U.S. dollar to continue to strengthen against its main rivals.
Factors such as the spread of Covid-19 in China and the ongoing conflict between Russia-Ukraine continue to trigger uncertainty in the market.
The Aussie dollar struggled to maintain its strength after a slight decline from a nearly 5 -month high, while the New Zealand dollar fell lower from a 4 -month high it reached last week.
Meanwhile, the pound continued to depreciate near its lowest level since November 2020 following a statement by the Governor of the Bank of England (BOE), Andrew Bailey in the previous session.
Bailey said that changes in commodity markets in the wake of the Russo-Ukrainian war have posed risks to financial stability and the challenges facing the world economy are greater than after the global financial crisis.
He added that the rise in energy prices would be the most unusual since 1970. When asked about the hike at the May meeting, Bailey told of the highly volatile situation after Russia's invasion of Ukraine, raising energy prices even higher.
The euro also depreciated but overall was seen still hovering around the same price against the USD. Investors raised expectations that the European Central Bank (ECB) will raise interest rates faster to curb inflation.
Data on Friday this week is forecast to show European inflation rebounding in March, reaching a new all -time high of 6.5% on an annual basis.
