The dollar rose to its highest level on Monday, in light of growing concern about slowing global economic growth and rising interest rates.
According to Arab Net, high inflation, the war in Ukraine, and the tightening of lockdowns against the outbreak of Covid-19 in Beijing and Shanghai, have left investors in a state of uncertainty, but in return they are sure that interest rates in the United States The United States is on the rise.
The dollar index, which measures the US currency against six major currencies, has risen by about 9% this year, and hit its highest level since late 2002 today, Monday at 104.090.
The Australian dollar, sensitive to growth, fell 1% to $0.6999, its lowest level since February. The British pound and the New Zealand dollar reached their lowest levels in 22 months, while the euro and the yen were slightly above the recent major declines.
The dollar's gains came against the decline in stock markets, and it rose 0.3% to its highest level since 2019 against the Swiss franc. It also rose 0.4% and near a two-decade high of 131.00 yen, and tested recent highs at $1.0508 per euro.
Movements in US interest rates are not the only supportive of the dollar,' said strategists at NatWest Markets in a note.
They added: The downside risks to global growth arising from Ukraine and China are more urgent for Europe and Asia than for the United States, creating an atmosphere of 2018-style dollar exceptionalism
China's trade data showed imports were stable in April, and exports rose by 3.9%. That was a little better than expected, but it didn't help much to the yuan, which fell to an 18-month low of 6.7260 per dollar as closings tightened in Shanghai.
The yield on the benchmark 10-year US government bonds rose strongly by 163 basis points this year, which supports the dollar's rise with it.
The US Federal Reserve raised its benchmark interest rate by 50 basis points last week, and strong jobs data boosted bets for more big increases, with a focus on inflation figures on Wednesday.
On the other hand, cryptocurrencies have been hit by investors fleeing risky assets, with Bitcoin taking losses at the end of the week near its lowest level this year at $33,500, while Ether, which is down 4% on Sunday , at $2,440.
