The dollar rose against a basket of major currencies today after hawkish Federal Reserve comments prompted a jump in short-dated US bond yields, lifting demand for assets denominated in the US currency.
The US currency was also bolstered after US durable goods data came in less weak than expected, quelling some jitters about US economic health. Retreating oil prices also offered broad dollar support.
The euro slipped 0.5 per cent to $1.5547. Some traders also said that selling in the pair by Russian names was pulling the pair away from one-month highs hit earlier this week at $1.5818.
Two-year Treasury yields surged 12 basis points to 2.7546 per cent, its highest since the start of the year, after Dallas Fed President Richard Fisher on Wednesday said that US rates may rise "sooner rather than later" if inflation persists.
In the euro zone, the two-year Schatz yield hit a nine-month high of 4.303 per cent, but its rise was only half that of its US counterpart.
The euro also lost ground after figures showed the first rise in Germany's seasonally adjusted jobless total in over two years. At the same time, euro zone economic sentiment stabilised in May, but consumers became more gloomy.
The dollar rose half a percent on the day to 72.926 against a basket of six major currency rivals, approaching a two-week high. It rallied by the same amount to 105.29 yen.
Analysts also said that an ongoing retreat in US crude oil prices from a record high at $135.09 per barrel was also prompting technical gains in the dollar.