The US dollar traded stronger in the European session after slower-than-expected US inflation data suggested that interest rates will remain high for a long time.
Annual US consumer prices rose 6.4% in January, down slightly from the previous reading of 6.5% and missing expectations for a 6.2% rise.
Despite the decline, but the market sees the Federal Reserve (Fed) may continue to raise interest rates or leave them high for some time.
Some Fed officials have also offered their openness to further rate hikes to keep inflation on target.
Investors' focus is now shifting to the release of US retail sales data in the New York session which is expected to show growth in January.
Turning to the current market situation, the dollar index remained firm at around 103.53 against a group of major currencies.
The Aussie dollar was one of those that plunged badly in today's trading session due to the strengthening of the US dollar until it failed to take advantage of the hawkish statement of the governor of the Reserve Bank of Australia (RBA).
In the Asian session, governor Philip Lowe said inflation is still too high and there is a risk that the central bank is not doing enough with interest rates.
The weakness of the Aussie dollar was also followed by a decline in the New Zealand dollar and the Canadian dollar, which respectively lost around 0.8% and 0.5%.
The yen fell further to a six-week low as higher 10-year US bond yields supported US dollar trade.
The euro also slipped on a stronger greenback, which saw it trade bleakly around 1.0700 in the European session.
