Awaiting the release of US inflation data, currency markets continued to exhibit volatile movements at the opening of the European session.
This was reflected in the US dollar trading slightly higher, with the dollar index trading stable at around 101.72 against a group of major currencies.
Earlier, the giant currency traded weakly following disappointing developments in talks between US President Joe Biden and policymakers on the debt ceiling issue.
However, investors' uneasiness is dominating the market at the moment, which is impatiently waiting for the US inflation data.
The consumer price index (CPI) is expected to show an annual reading unchanged at 5% and a slight monthly increase to 0.4% in April.
Stronger and weaker readings in the CPI may trigger high price volatility for the currency market, especially the US dollar in the New York session.
Meanwhile in Europe, the euro traded lower again after failing to maintain the recovery recorded in the Asian session.
The pound continued to hold on to a one-year high as the market expected the Bank of England (BOE) to raise interest rates by 25 basis points on Thursday.
Additionally, commodity-related currencies the Aussie, New Zealand and Canadian dollars are flat around weekly highs against the greenback.
