The US dollar regained its throne as the king of currencies after it rebounded from two-week lows as the 10-year US bond yield continued to soar higher.
Tracking currency movements in the market on Thursday, the dollar index traded firmly around the 113.00 price level against most major currencies.
The benchmark 10-year US bond yield rose to a new 14-year high of 4.15%.
The yen continued to slide down with price movements now heading towards the 150 price level against the US dollar, the weakest in 32 years.
Japan appears to be taking a wait-and-see approach as investors await another intervention from the government and central bank.
Meanwhile, the pound traded lower despite UK inflation data published on Wednesday showing a stronger-than-expected reading of 10.1% in September.
In Canada, inflation eased last month to 6.9% from 7.0%, but core inflation unexpectedly showed an increase at 6.0%.
This makes the trading of the loonie dollar not change much as it is traded stable compared to the greenback.
Stubbornly high inflation has reignited fears of a recession as most global central banks seek to lower it regardless of the negative impact on the economy.
Continued price pressures indicate that aggressive monetary policy tightening will continue.
The Federal Reserve (Fed) policymakers reaffirmed their commitment to continue aggressive interest rate hikes.
Minneapolis Fed President Neel Kashkari said the Fed may not stop tightening even if its benchmark reaches 4.5% to 4.75% if inflation remains high.
This in turn helped support the US dollar to strengthen and US 10-year bond yields rose further.
