The dollar strengthened against other currencies due to higher US Treasury yields and concerns about Russia cutting investments. The Federal Reserve reported some stabilization in the US economy. The S&P 500 index decreased, while the yen weakened. Sterling rose on positive UK manufacturing data. The Canadian dollar fell despite high oil prices, as Canada unexpectedly had a trade deficit. The Australian dollar increased with improved consumer sentiment. The euro lost value against the dollar due to widening yield differences and financial issues in Eastern Europe. The European Central Bank hinted at potential interest rate hikes.