The greenback nudged higher as risk sentiment worsened in Europe over resurfacing banking concerns while the euro declined even as policymakers left the door open to a 50 basis point rate hike at the European Central Bank meeting next week.

The US dollar index ticked up by 0.2% at 101.48 as investors fled for shelter after First Republic Bank and UBS earnings as concerns about the stability of the financial sector resurfaced.

According to ECB board member Isabel Schnabel, a rate increase of 50 basis points was not out of the question and would rely on released data, particularly inflation data that is coming two days before the May meeting.

EUR/USD edged down by 0.2%, despite rising 1.7% in April to date and more than 4% since the start of March, it is still holding above $1.10.

GBP/USD plunged by 0.2% hovering close to the highest level in 10 months of $1.2545 touched previously during the month.