The US dollar traded mixed against its main rival, with the euro losing ground on reports of dovish indications of upcoming European Central Bank (ECB) measures.
The dollar index, which measures the greenback's strength against six other major currencies, traded at 102.50 in the Asian session.
Bloomberg News reports that President Christine Lagarde and other policymakers will opt for a 50 basis point rate hike in February and reduce the increase to 25 basis points starting in March.
This in turn dragged the euro to retreat from the 8-month high and traded lower at 1.0788 against the US dollar in the Asian session today.
In contrast to the pound, the currency was stronger at a one-month high against the greenback following employment data that showed the labor market remained tight in November.
Following higher wage growth, the Bank of England (BOE) may need to raise interest rates again or keep them high for longer.
Investors are now turning their attention to the release of UK inflation data in the upcoming European session.
Before that, investors will first watch the Bank of Japan (BOJ) policy decision in the Asian session, with the follow-up statement by Governor Haruhiko Kuroda being the main focus.
The Japanese yen traded slightly lower around the price of 128.80 against the US dollar at the opening of the Asian session.
On the other hand, the Aussie and New Zealand dollars remained traded high against the US dollar.
