The US dollar continued to rise higher in the European session by hitting a 20 -month high against most major currencies after being supported by high US inflation data.
At the time of writing, the dollar index that measures the strength of the greenback dollar traded higher at around 95.05 against a group of its main competitors.
The US annual inflation rate is rising at the fastest rate in 3 decades, leaving investors optimistic that the Federal Reserve (Fed) will respond by raising rates
Moreover, the strength of the giant currency was also supported by readings of US unemployment claims data which continued to show a decline last week of 267,000 from 271,000 recorded previously, but slightly deviated from expectations for a decline of 257,000.
Also accompanying the strengthening of the US dollar was the yield on 10 -year US bonds which rebounded at 1.57%, sinking the yen to a four -year low against the USD.
While risk-sensitive currencies, the Aussie and New Zealand dollars were dragged down to one-month lows against the greenback, especially after disappointing Australian jobs data added pressure on the Aussie dollar.
The euro continued to trade around its lowest level since July 2020, trading at 1.1460 against the US dollar.
