The king of the US dollar continued to dominate the market in the European session, trading at a six-week high against its main rival.
The giant currency continued to gain sustained support after US producer inflation data was published showing a stronger-than-expected reading in January.
It strengthened the view that the Federal Reserve (Fed) could extend its interest rate hikes to fight inflation, especially since US retail sales data released on Wednesday was also strong.
Not only that, but some Fed policymakers also offered hawkish statements about their willingness to raise interest rates higher.
Most recently, St Louis Fed President James Bullard said he may support a 50 basis point rate hike at the next meeting.
In the European session, the dollar index, which measures the greenback's strength, traded firm at 104.40 against six other major currencies.
Meanwhile, the pound continues to extend its decline below the 1.2000 price level against the US dollar, while the euro is also gloomy at around 1.0650.
Also seeing severe falls, were commodity-related currencies such as the Aussie, New Zealand and Canadian dollars at weekly lows against the greenback.
Meanwhile, the yen continued to sink further to a new two-month low amid a surge in US 10-year treasury yields.
The yen was also affected by the uncertainty about the position of the new governor of the Bank of Japan (BOJ) whether he will maintain a loose monetary policy or change towards tightening.
