The US dollar traded steady at a nearly one -year high against major rivals as markets continued to be plagued by concerns over inflation and positive expectations for the Federal Reserve (Fed) to initiate a reduction in bond purchases.
Against most major currencies, the dollar index that measures the strength of the greenback dollar traded higher at 94.20.
Senate Republican Leader Mitch McConnell’s statement on the debt ceiling initially prompted the USD to depreciate, and drove major currencies up during the Asian session.
Even so, the U.S. dollar remained strong amid positive market expectations for a reduction in bond purchases, with the hope that the U.S. NFP jobs report to be published on Friday shows a stronger reading.
Meanwhile, global inflationary pressures eased slightly after Russian President Vladimir Putin said the country was ready to stabilize the global energy market. This has had an impact on the USD safe-haven and bond yields have reduced its profits slightly.
The pound traded flat at around 1.35800 against the US dollar after gaining slightly following Putin's statement that Russia would export natural gas to Europe this year to help ease the energy crisis on the continent.
This provided some relief for the UK facing a major energy crisis following a spike in gas prices to all -time highs on Wednesday.
