The dollar strengthened on the prospect of higher interest rates than expected in the US. 

The euro hovered around $1.03, near three-week lows, as traders remained cautious amid escalating trade tensions.

The Japanese yen strengthened past 154 per dollar, reaching a seven-week high, as strong wage and services data bolstered expectations of a more hawkish stance from the Bank of Japan.

The British pound fell to $1.242 as concerns over US tariffs continued to rattle markets.