The euro strengthened above $1.10, its highest level in six weeks, supported by expectations of higher interest rates from the ECB and other major European central banks amidst ongoing concerns about elevated levels of inflation in the region.

The ECB implemented its eighth consecutive interest rate hike and indicated the possibility of a similar move in July.

Additionally, the Swiss National Bank raised its policy rate for the fifth time and hinted at further increases, while the Norges Bank surprised the markets with a larger-than-expected 50 basis point hike.

The Bank of England is also anticipated to follow suit and raise interest rates.

In contrast, the Federal Reserve temporarily paused its tightening cycle in June but is widely expected to resume raising interest rates in July.