With investors' enthusiasm for riskier currencies waning in the wake of disappointing corporate reports that heightened concerns about the state of the economy, the U.S. dollar strengthened to a near one-week high against a basket of currencies on Wednesday. Additionally, Treasury yields increased.

A decrease in risk appetite was caused by the tech giant Alphabet falling after its cloud division failed to meet revenue projections. Rising U.S. Treasury yields also contributed to the decline in other mega-cap stocks.

The increase in U.S. bond yields has caused a stir in the world's financial markets and propelled the dollar index to its highest level in over a year this month.

The dollar index that gauges the greenback versus its major pairs edged up by 0.3% at 106.5 hitting a peak in a week.

With the Japanese yen trading at 149.99 per dollar last time, traders were on the lookout for any indications that Japanese authorities would step in. The dollar also kept the yen pegged close to the heavily watched 150 level.