The euro strengthened to $1.167 on Wednesday, the highest in three months, and tracking the jump in G10 currencies after the US Treasury raised its bond buyback limits and triggered a plunge in the dollar. The US Treasury doubled the limit of long-term notes and bonds to be repurchased next financial quarter, likely raising dollar liquidity from the US Treasury General Account. The measures signaled that Washington is prioritizing lower long-term yields, opting instead to raise dollar supply to strengthen currencies in the DXY basket. Meanwhile, soaring natural gas prices in Europe due to the supply shortages from the Middle East were expected to maintain upside risks on inflation. The European Central Bank is expected to deliver more rate hikes this year to combat price growth.