The European market session saw the US dollar continue to extend its strengthening at a 7-week high against major rivals.
Most of the strong US economic data has reinforced the view that the Federal Reserve (Fed) needs to raise interest rates higher and leave them longer.
This was seen in the latest data published last Friday, where personal consumption expenditure (PCE), which is the Fed's measure of inflation, showed an increase of 0.6% last month from 0.2% in December.
As a result, the US dollar climbed higher against other major currencies, seeing the dollar index trade above the 105.00 price level earlier this week.
The release of US durable goods data in the New York session today will be the next focus of the market.
Taking a look at major currencies, the euro remained trading weaker after touching a fresh 7-week low against the USD at the opening of the European session.
The pound also remains under pressure as the market continues to monitor developments in the post-Brexit agreement negotiations between the UK and the European Union (EU).
The yen, meanwhile, held off from a move lower, seeing it trade at a 2-month low against the greenback.
Also, the Aussie dollar and kiwi remained gloomy after slipping lower amid widespread US dollar dominance.
