Currency Buzz: Dollar Firms As Risk Appetite Fades On Global Recession Fears

16 Sep 2022 , 02:25 PM

Surging risk of recession to the global economy in the light of rising interest rate hikes by central bankers as noted in the World Bank study is seen denting investors risk appetite. According to a comprehensive new study by the World Bank, as central banks across the world simultaneously hike interest rates in response to inflation, the world may be edging toward a global recession in 2023 and a string of financial crises in emerging market and developing economies that would do them lasting harm. The dollar index that tracks the greenback against a basket of currencies gained appetite as a safe haven currency and is currently quoting up 0.38% at 109.90, not far from its two-decade peak of 110.79. Meanwhile, 10-year Treasury yields were hovering at 3 month highs near 3.47%. Broad strength in the dollar dragged the euro, which carries maximum weight in the dollar basket back below parity at $0.9955. Powered by Commodity Insights