The nervousness of the financial markets has pushed dollars Wednesday, September 28, to a new two-decade high as rising global interest rates heightened fears of a recession. Speaking of which in shape Reuters.
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Dollar
The US dollar index rose about 0.5% against a basket of major currencies to reach a new high of 114.70 in Asian business.
The dollar’s gain was driven by 10-year US Treasury benchmark yields which rose to 4% for the first time since 2010, topping 4.004%. The two-year yield was 4.2891%.
Pound
The British pound fell 0.95% to $ 1.06345. It is still taking heavy losses after falling to an all-time low of $ 1.0327 earlier in the week.
Bank of England chief economist Hugh Pill said yesterday that the central bank is likely to take “significant political action” in response to Treasury Secretary Kwasi Kwarteng’s ambitious tax cut plans.
EUR
The euro lost 0.45% to $ 0.9550, not far from a recent 20-year low of $ 0.9528. It is worth noting that on euro exchange rate was influenced by the news of the damage to the Nord Stream gas pipelines.
Read also: Oil prices drop amid a new dollar high
Yuan
The Chinese yuan fell to 7.2350 per dollar, the lowest level since 2011.
A source told Reuters that Chinese monetary authorities are asking local banks to relaunch the yuan repair facility they abandoned two years ago.
Other currencies
A stronger dollar pushed other currencies to multi-year lows on Wednesday:
- The Australian dollar fell 0.8% to a low of $ 0.6381, the lowest level since May 2020.
- The New Zealand dollar lost around 1% to $ 0.55645, also its lowest since March 2020.
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