The US dollar once again strengthened following the plunge recorded by the euro after being disappointed by the European Central Bank (ECB) which showed it was in no hurry to raise interest rates.
This brought the euro to fall sharply to its latest low since April 2020, hitting $ 1.0758 against the US dollar following the ECB's policy decision.
The ECB closed its policy meeting with a precautionary measure to reduce support. It however confirmed plans to start reducing bond purchases in the quarter and end them in the third quarter.
Meanwhile, the greenback dollar continued to rise higher after the latest data showed U.S. retail sales rose in March, largely driven by gas and food prices.
This strengthening continued to push the yen further to a 20 -year low by trading at around 126.30 in the Asian session.
Policy differences between the Federal Reserve (Fed) which is towards tightening while the Central Bank of Japan (BOJ) and the ECB to remain with loose policy have put a further gap in the strength of their respective currencies.
The pound was also affected by the strength of the US dollar, causing it to plunge back around the 1.3000 price level in today's Asian session.
Meanwhile, growing tensions between Ukraine and Russia have also put pressure on major currency trading and lifted the US dollar as a safe-haven.
The greenback is expected to continue to strengthen towards the end of the week as most major banks close in conjunction with the Good Friday holiday.
