The US dollar continued to climb higher in the European session after being driven by the latest projections from the Federal Reserve (Fed) which indicated the possibility of interest rates faster than expected.
At the time of writing, the dollar index which measures the strength of the greenback dollar against six other major currencies traded higher at 91.63.
The US central bank has surprised the market by signaling two rate hikes in 2023 and the start of discussions on a reduction in bond purchases at the next meeting.
The Fed has also raised its outlook for growth and employment in the United States, as well as limiting inflation to 2021.
Meanwhile, the euro depreciated lower below 1.2000 following the strengthening of the US dollar, with investors focused on the final reading of the European Zone inflation data for May.
The pound also plunged below 1.4000 against the US dollar, as well as being affected by concerns over the growing Covid-19 case in Britain following the outbreak of the unstoppable Delta variant.
On the other hand, Asian currencies failed to sustain the gains recorded in the Asian session, almost erasing gains made following positive economic data readings.
The kiwi dollar previously rose after being supported by New Zealand’s economic growth data which showed 3 -fold growth than expected, thus saving the country from a valley of recession
