Dollar reigns as hawkish Federal Reserve stands out among central banks

The US dollar traded near its highest in over a year to the euro and close to a five-year peak against the yen as a hawkish tilt by Federal Reserve policymakers, buoyed by solid U.S. data, contrasted with more dovish monetary outlooks in Europe and Japan.

The dollar index , which measures the greenback against six major peers, eased 0.1% to 96.733, but remained within touching distance of Wednesday's high at 96.938, the strongest level since July 2020.