The US dollar finally regained strength to rise higher in the European session by hitting its latest high since December 2002 against most major currencies.
The resilience of the Federal Reserve’s (Fed) stance to raise interest rates in the fight against inflation seems to still support the king of the currency despite a slight weakness earlier in the week.
The resurgence of the US dollar plunged the euro to its latest 20 -year low, not to mention that European Central Bank (ECB) policymakers still failed to give new indications of an interest rate hike in July which is expected to remain at just 25 basis points.
The pound also depreciated but the decline was limited as investors awaited the speech of the Governor of the Central Bank of England (BOE), Andrew Bailey tonight.
Meanwhile, the Aussie dollar also weakened lower despite the Reserve Bank of Australia's (RBA) latest policy decision which saw the central bank live up to expectations with a 50 basis point increase in interest rates.
The kiwi dollar also slipped even more after it was reported that housing prices in New Zealand fell to a 13 -year low as it was influenced by rising interest rates.
Moreover, the Canadian dollar also depreciated following the appreciation of the US dollar, failing to maintain support from high crude oil trade.
