The US dollar regained support at the start of European session trading, pushing most major currencies, particularly the euro, to depreciate.
The dollar index, which measures the strength of the greenback dollar against its major competitors, rose higher at 91.10 after going through a dull trade during the Asian session.
The strengthening of the USD pushed the euro close to the price level of 1.20000, and failed to react to the European manufacturing PMI data for February which showed better readings than previously estimated.
Meanwhile, the pound currency also depreciated as the market expected support from UK Finance Minister Rishi Sunak who was reported to provide additional assistance of 5 billion pounds to affected businesses.
However, at the same time, the people of the UK are also facing the threat of tax increases to cover the government's finances which have been struggling with pandemics.
In addition, commodity currencies, the Aussie dollar, the kiwi and the loonie also retreated from the initial gains.
Asian session.
The Reserve Bank of Australia (RBA) once again intervened in the market by announcing the doubling of daily bond purchases to ensure long-term yields remain at the central bank's target level.
The RBA policy meeting in the Asian session tomorrow, will be the main focus of the market which is expected to keep interest rates at a low of 0.10%.
