Investing.com - The dollar rose to one-and-a-half month highs against a basket of other major currencies on Thursday, after Federal Reserve Chair Janet Yellen said the central bank is on track to raise interest rates "before year end."
The greenback remained supported after Yellen said, in testimony before the House Financial Services committee, that the Fed is likely to raise rates "at some point this year." She added that the U.S. labor market healthier but "still some slack."
According to Yellen, the Greek debt crisis, as well as China's recent economic woes, "pose some risks" to U.S. growth.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.39% at 97.67, the highest level since June 2.
EUR/USD declined 0.55% to one-and-a-half month lows of 1.0890, while EUR/GBP hit an eight-year trough of 0.6974, down 0.39% for the day, as investors remained cautious ahead of the European Central Bank's rate decision later in the day.
The ECB was expected to leave its minimum bid rate close to zero. ECB President Mario Draghi was set to hold a press conference shortly after the rate decision.
The single currency found little support after Greece's parliament approved late Wednesday the bailout package presented by prime minister Alexis Tsipras.
Tsipras can now begin working with Greece's European creditors to obtain emergency funding, in exchange for a series of economic reforms.
The vote came as violent protests erupted in front the Greek parliament in Athens on Wednesday evening contesting the bailout package.
Euro zone finance ministers were to hold talks on the latest developments in Greece later Thursday.
The pound was also lower against the dollar, with GBP/USD down 0.15% at 1.5615.
Sterling's losses were limited however after Bank of England Governor Mark Carney said earlier in the week that the time for rate increases is moving closer.
He also reiterated that rate hikes when they do come will be gradual.
Elsewhere, the dollar was higher against the yen and the Swiss franc, with USD/JPY up 0.21% at 124.01 and with USD/CHF gaining 0.46% to 0.9562.
The Australian dollar was higher, with AUD/USD adding 0.09% to 0.7387, while NZD/USD tumbled 1.10% to six-year lows of 0.6616.
Data earlier showed that the New Zealand Business Manufacturing Index rose to 55.2 in June from a reading of 51.5 the previous month.
A separate report showed that New Zealand's consumer prices rose 0.4% in the second quarter, less than the expected increase of 0.6%, after a 0.3% fall in the three months to March.
USD/CAD edged up 0.25% to trade at 1.2942.