The US dollar traded slightly lower after hitting its latest one -year high as the market headed into the weekend.
However, the king of the currency still maintained its strengthening momentum to trade at its highest level in more than a year compared to its main rivals.
Investors have raised hopes that high U.S. inflation will force Federal Reserve (Fed) policymakers to change their policies by raising interest rates earlier.
This is seen from the movement of higher short -term US treasury yields, particularly five -year bond yields which have climbed to February 2020 highs.
Against six other major currencies, the dollar index that measures the strength of the greenback dollar traded hovering around 95.15.
The market also expects the first rate hike to take place by July 2022, which is after the reduction in bond purchases is expected to end. Meanwhile, the second rate increase is expected in November.
The euro, meanwhile, was still trading weak at a 16 -month low against the USD although price movements were seen starting to pick up slightly in the European session.
While the pound also traded positive above the 1.3400 price level against the greenback, which may be supported by recent developments in the post -Brexit issue and the USD trading pullback.
