The U.S. dollar drifted higher against its major counterparts in the European session on Thursday, as U.S. Treasury yields rose on fears about higher inflation and investors await a speech by Federal Reserve Chairman Jerome Powell regarding gyrations in bond markets.

The benchmark 10-year US Treasury yields continue to hold above 1.4 percent on concerns that massive stimulus and vaccine rollouts may drive up inflation.

Powell is due to speak at a conference later in the day.

Market participants await Powell's comments to see whether he attempts to downplay the recent volatility and his observations about the economic outlook.

The U.S. Senate delayed a debate on a $1.9 trillion Covid-19 relief bill until at least Thursday, with passage in the chamber likely pushed off until the weekend.

The greenback appreciated to 2-day highs of 1.3916 against the pound and 1.2027 against the euro, after falling to 1.3968 and 1.2066, respectively in early deals. The greenback is seen finding resistance around 1.37 against the pound and 1.18 against the euro.

The greenback recovered from its early lows of 0.9186 against the franc and 106.96 against the yen, rising to more than a 5-month high of 0.9254 and a 7-1/2-month high of 107.36, respectively. The next likely resistance for the greenback is seen around 0.94 against the franc and 109.00 against the yen.

The greenback rose back to 0.7767 against the aussie and 0.7235 against the kiwi, on track to pierce its Asian session's 2-day highs of 0.7752 and 0.7227, respectively. The greenback is likely to find resistance around 0.75 against the aussie and 0.70 against the kiwi.

In contrast, the greenback held steady against the loonie, after easing off from a 2-day high of 1.2675 hit at 6:15 pm ET. At yesterday's close, the pair was worth 1.2653. U.S. weekly jobless claims for the week ended February 27 and factory orders for January are scheduled for release in the New York session.

Federal Reserve Chair Jerome Powell speaks about the U.S. economy at an online event hosted by the Wall Street Journal at 12:05 pm ET.

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