Federal Reserve (Fed) Chairman Jerome Powell's hawkish statement also dragged the price of gold to plunge further.
The yellow metal traded at a one-week low of $1,810 an ounce in the Asian session after falling about 1.8% in the previous session.
Powell surprised the market by warning that the central bank would raise interest rates higher and at a faster rate than expected.
This follows inflation data that is still high and some other strong US economic data, which has given room for the Fed to implement more tightening.
In addition, Powell said the Fed's decision will be adjusted on a meeting-by-meeting basis based on the latest published data.
This thus returns investors' expectations that for an increase of 50 basis points at the next meeting (March 23) and the final rate is predicted to peak at 6.00% (currently 4.50%-4.75%).
As a result, the US dollar continues to soar and sink other major currencies lower including the yellow metal.
