The dollar rose to a new two-decade high on Thursday, while Asian markets fell to a two-year low after the Federal Reserve boosted interest rates in the United States.
During the Asia session, the dollar index, a gauge of the greenback versus a basket of foreign currencies, extended Wednesday’s gains to a fresh 20-year high of 111.72. The euro fell to a 20-year low as Russia called up reserve forces to fight in Ukraine. Sterling, the Australian currency, the Kiwi, the loonie, the Singapore dollar, and the yuan all hit new lows.
The yield curve in the United States inverted further as investors priced in the possibility of a “soft” economic landing and braced for long-run growth loss. The Australian and New Zealand dollars were trading at their lowest levels since mid-2020, with the Aussie down 0.7% to $0.6586 on Thursday. Oil surged in commodities markets as supply worries outweighed fears of a worldwide slump. Bitcoin was trading around $18,795, close to its recent lows.
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