The dollar strengthened on Wednesday as traders reduced their bets on impending Fed’s rate trims in the wake of strong consumer spending figures in the United States and as it continued to function as a safe-haven currency amid the threat of a U.S. government default.

The strong increase in consumer spending in April and remarks from Fed officials subdued hopes for an impending reduction in U.S. interest rates.

In June, there is no probability of a rate cut, compared to a 17% chance a month ago, according to interest rate futures pricing.

The dollar index that gauges the greenback versus its major pairs ticked up by 0.3% at 102.96, touching the highest level since the beginning of April.

EUR/USD slipped 0.3% at $1.083.

The release of European inflation data is scheduled today, but little change from preliminary numbers is anticipated.

GBP/USD surged by $1.2422, recording the highest level since the end of April.

USD/JPY advanced by 0.4% to 136.99.