Currency Buzz: US Dollar Surges To Two-Decade High

9 May 2022 , 01:22 PM

The American currency surged to its highest level in two decades, as investors flocked to the safe haven currency amid heightened uncertainty. Russia-Ukraine war situation, rising Covid cases in China, global inflation concerns and US Fed aggressive on interest rates are driving investors demand for dollar. Besides, leaders from the Group of Seven developed democracies pledged Sunday to phase out or ban the import of Russian oil, adding to concerns. The dollar index, that measures the greenback against a basket of currencies surpassed 104 mark, hitting fresh 20-year highs. US benchmark treasury yields are also standing tall at 3.177%, pushing dollar further up. US Federal Reserve last week announced a 50 basis point hike, its largest increase since 2000 to combat inflation. Meanwhile, US nonfarm payrolls increased 428,000 in April, more than expected, suggesting strong demand for labor. Investors now await fresh US inflation data due on Wednesday. Powered by Commodity Insights