A Bloomberg gauge of the dollar rose along with short-term Treasury yields, while swaps traders pared bets on a December Federal Reserve interest-rate reduction after Chair Jerome Powell said the central bank does not need to hurry rate cuts. 

The Bloomberg Dollar Spot Index is up 0.3%.

"The economy is not sending any signals that we need to be in a hurry to lower rates," Powell said in prepared remarks.

"The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully".

Earlier, US producer prices picked up in October; final demand PPI up 0.2% month-on-month.

EUR/USD briefly fell below the $1.05 mark to fresh one-year low before paring losses; pair down 0.4% to 1.0518 and pressured on Powell remarks.

Markets were "not confident enough to test EUR/USD lower than 1.05 in earnest," said Yusuke Miyairi, a currency strategist at Nomura International Plc.

GBP/USD pares losses from day's low, trades down 0.4% at 1.2660

Cable remains set for seventh weekly drop, the longest losing streak in a decade.

One-year volatility extends gains to trade as high as 8.2950% for the first time in a year.

USD/JPY at session highs on Powell remarks, rises 0.6% to 156.35.

Market is short gamma at these levels, with long positions slowly building up this week.

Source : Bloomberg