Most major currencies have begun to retreat as markets enter the European session, paving the way for the greenback dollar to return higher.
Against a basket of major currencies, the dollar index traded higher at around 96.40.
Previously, the king of the currency declined which may have been influenced by profit -taking activity by investors despite having been shown by strong inflation data.
Investors have now shifted their focus to policy meetings involving several major central banks, in particular the Federal Reserve (Fed).
A reading of strong U.S. inflation data in November, has boosted investor confidence that the Fed is to announce a quicker reduction in bond purchases at this week’s FOMC policy meeting.
On an annual basis, the US consumer price index remained strong at its highest level since 1982, rising at 6.8% from 6.2%.
Following the development of the European currency, the euro again reduced gains by trading lower below the 1.1300 price level in line with the rise of the greenback dollar.
While risk -sensitive currencies, the Aussie dollar and kiwi also recorded depreciation, erasing gains made at the end of last week’s trading.
