The U.S. dollar continued to strengthen amid rising U.S. bond yields and concerns over a continued rise in global inflation that is driving safe-haven demand for the U.S. dollar.
The strengthening of the USD price was also supported by readings of US economic data which showed the manufacturing sector rose stronger than expected in May.
10 -year U.S. treasury yields continued to rise after Federal Reserve (Fed) policymakers continued to provide support for monetary policy tightening.
San Francisco Fed President Mary Daly said she saw some 50 basis point increases and they needed urgently to find a neutral interest rate.
While St. Louis Fed President James Bulard said it was still too early to say inflation had peaked and a half -basis point rate hike in every meeting was a good plan for now.
Following the development of European currencies, the euro failed to maintain its strength following the rise of the US dollar, displaying a decline below 1.0600.
The pound also traded lower, weighed down by the stronger USD. Investors remain placing expectations for the Central Bank of England (BOE) to raise interest rates once again by 25 basis points to 1.00% at its policy meeting later this month.
On the other hand, the Canadian dollar remained strong after the Central Bank of Canada (BOC) raised rates to 1.50% on Wednesday, also signaling to act more aggressively in pursuit of the 2% inflation target.
