Going into the European session, the US dollar continued to defend its strengthening after reaching a new high since May 2022 in the previous session.
With growing geopolitical tensions and gloomy economic growth prospects have added support for the US dollar which was previously supported by the hawkish stance of the Federal Reserve (Fed).
Leaks on the Nord Stream pipeline are feared to deepen the conflict between the European Union (EU) and Russia after Ukraine accused Moscow of being responsible for the damage.
European Commission chief Ursula von der Leyen said the damage was caused by sabotage and warned of the strongest possible response if European infrastructure was attacked.
This caused the euro to fail to capitalize on European Central Bank (ECB) policymakers' statements on interest rates, seeing it remain traded at its weakest level in 20 years.
ECB President Christine Lagarde said more interest rate hikes would follow, while policymaker Peter Kazimir said a 75 basis point increase was a good option for their tightening measures.
Meanwhile, the pound continued to move weakly following the International Monetary Fund's (IMF) criticism of the new Liz Truss administration's plans to launch tax cuts and stimulus aid to UK households.
According to the IMF, such actions could undermine the central bank's efforts to lower high inflation.
