The US dollar continued to strengthen earlier in the week after being shown by US NFP employment data readings that rose above expectations in April.
With an increase of 428,000 jobs last month, this indicates that the fundamentals of the US economy are strong despite recording slower growth in the first quarter.
The Federal Reserve’s (Fed) decision to raise interest rates last week also still supported the strengthening US dollar and pushed it to its highest level since 2002 against most major currencies.
The strengthening of the king of currencies pushed the Aussie dollar to a three-month low and the New Zealand dollar to its weakest level in 22 months as well as being crushed by concerns over the closure of Covid-19 in China.
Meanwhile, hawkish statements from some European Central Bank (ECB) policymakers citing opportunities for a slight interest rate hike have provided support for the euro.
However, the unparalleled strengthening of the US dollar limited the movement of the euro to extend the rise instead of declining again to continue hovering at lows.
Moreover, concerns over gloomy economic growth expectations in the UK by the Bank of England (BOE) last week, continued to drag pound sterling trading to remain weak at its lowest level since June 2020.
