The safe-haven dollar rose to its highest level in 20 years against major currencies amid fears of a global economic slowdown and expectations of a significant interest rate hike by the US Federal Reserve. .
The yen was among several currencies that fell on Monday, falling to its lowest level against the dollar since 1998 as the gap between Japanese and US bond yields widened following the release of US inflation data on Friday.
The dollar index, which measures the value of a currency against six major currencies, rose 0.5% on the day to 104.75, close to a 30-year high of 105.01 hit in May. In recent trading, it rose by 0.2% to 104.63.
Markets will focus this week on central bank measures to curb inflation.
The US Federal Reserve and the Bank of England are expected to raise interest rates, and there is a possibility that the SNB will also raise rates.
The Bank of Japan has so far resisted pressure to tighten monetary policy, which has weakened the currency. The policy divergence has sent the yen down more than 15% against the dollar since early March.
The yen fell 0.6% on the day to 135.22 yen per dollar, its lowest level since 1998. It last traded at 134.37 yen per dollar.
Source: El Iktisad
