The euro and Japanese yen are poised to extend their weekly slumps, as the dollar ruled currencies market with a rod of iron on the back of the Federal Reserve`s stimulus outlook, rooting the greenback near a 10-month high against a six-currency basket.

Traders saw a hectic session on Thursday and volatility was evident, as the dollar gained momentum against majors, only to end the session right back where it kicked off. The U.S. currency, however, was up again approaching the highest level in ten months.

The USDIX, an index which tracks the performance of the U.S. dollar against six major currencies including the euro, pound and Japanese currency, was up 0.20 percent at 84.06 as of 09:52 GMT+2 today, near its multi-month high of 84.22 hit two days ago.

Dollar gain was fueled today after Fed official signaled that central bank might starting scaling back its quantitative easing program, dubbed as QE3 as soon as this summer, a comment that sent higher-yielding currencies tumbling amid speculation the Fed will exit stimulus.

As of 10:13 GMT+2, the EUR/USD was down around 1.2863. The yen lost further grounds approaching its multi-year low of 102.75 logged Wednesday against the greenback. The USD/JPY was holding at 102.45, and expected to see more Japanese selloff.

Stocks were hit as well by strong selloff that dragged the benchmark indexes down from its records, while commodities continue to suffer the weakness of gold futures, trading near a four-week low at $1,374.50 an ounce, beaten by a decline in U.S inflation rate.

Back to the currencies front, the Australian dollar hit a fresh 11 month-low today, extending slide from recent session, as the Reserve Bank of Australia`s decision to push borrowing costs to a all-time low continue to weigh on AUD/USD, trading around 0.9746.

During his five-day visit to China, Greek Prime Minister Antonis Samaras invited China to expand its investments in his country as he aims to make Greece a gateway for Chinese investments in Europe.  

Samaras call for China came after regaining some confidence following Fitch’s upgrade to Greece’s credit rating by one notch to B- from CCC with stable outlook.

“Greece in now anchored in the euro zone and this is unquestionable -- period,” Samaras said, clarifying that his country has made remarkable progress to tackle budget deficit while adopted reform programs to offset economic imbalances.

China said it is looking forward to expanding its investments in  in the port of Piraeus while encouraging more tourists to visit to Greece, in addition to investing in infrastructure in the European Union.

Credit rating agency Moody`s has upgraded Turkey`s rating by one notch to investment grade and has assigned a stable outlook for the first time in 20 years as the government reduced its debt and current-account deficits.

Moody`s Investors Service has today upgraded Turkey`s government bond ratings by one step to Baa3, the lowest investment grade, from Ba1. Moody`s said the reason of upgrading Turkey`s rating is the "recent and expected future improvements in key economic and public finance metrics."     

The first driver underlying Moody`s decision to upgrade Turkey`s sovereign rating to Baa3 is the recent improvement in the country’s economy, where Turkey`s debt has fallen by 10 percent to a manageable 36% of GDP since 2009. Moody`s expects this decline to continue in the coming years.