The greenback dollar took advantage of the opportunity to increase as a safe haven amid market indecision against the risk of a failure following the aggressive steps of central banks to stem inflation.
The chairman of the Federal Reserve (Fed) will speak before the Senate in the New York session about his actions last week to increase the utility rate.
Powell has previously warned of the risk of a slump in the United States following the central bank's move to increase rates.
Meanwhile, Richmond Fed President Thomas Barkis said he did not see the US economy experiencing steady growth for at least the next two years.
Risk sensitive currencies, the Aussie and New Zealand dollars saw lower losses after being impressed by gloomy market sentiment and a firmer US dollar.
Meanwhile, the continued increase in inflation in the UK in May means people will continue to be under pressure from high cost of living.
This caused the pound to decline slightly following the release of the data, but at the same time supported by hopes the central bank of England (BOE) will carry out another series of rate hikes to curb inflation.
On the other hand, euro trading remains limited if the positive impact of the European Central Bank's (ECB) bottom-line commentary regarding the potential for a higher rate hike in September, fades again if risks take over the market.
