Dollar climbs to 22-year-peak, bonds plunge as recession fret plagues money markets



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Dollar climbs to 22-year-peak, bonds plunge as recession fret plagues money markets

On Friday, the US Dollar Index (DXY) measured against a basket of six major currencies spiked to a fresh two-decade high, as sterling fell over 3.5 per cent after UK mini-budget and Euro pummels after soft business activity data.

However, bucking the market trend, Rouble stayed strong and gained 0.2 per cent in the day to 58.20 Rouble per dollar after hitting an intra-session high of 56.42 in mid-day trading, the highest level since mid-July. In point of fact, in the day’s mass-scale bloodbath in currency market was almost entirely galvanized by a recession fret, as soft eurozone business activity data coupled with a UK mini-budget had taken a greater toll on investors’ morale.

Besides, Dow has been closing in a bearish territory as US economy had contracted for a third straight month in September, S&P global survey report had unveiled.

Dollar jumps to fresh two-decade high, shares tumble, bonds fall

Citing statistics, in the day’s FX market wind-down, the US Dollar Index (DXY) measured against a basket of six major currencies on an average took a giant leapfrog of as much as 1.65 per cent to 112.77, hitting a fresh 22-year-peak, while US 10-year Treasury bond yields shed 0.02 percentage points to 3.68 per cent, and US 3-month Treasury bond notes shed 0.019 percentage points to 3.213 per cent.

Euro, the bloc’s common currency shared among 19 member states dipped 1.49 per cent to $0.9685 against its American peer, while Japanese Yen tumbled 0.67 per cent to 143.32 yen per Dollar. British Pound nosedived as much as 3.60 per cent to $1.0853 after mini-budget, while risk-sensitive loonies like of Aussies and Kiwis shed 1.73 per cent and 1.83 per cent to $0.6529 and $0.5741 respectively.

Canadian Dollar dropped 0.76 per cent to $1.3588, as oil prices bottomed to an eight-month low. Besides, MSCI’s gauge of global stocks index shrugged off 2.28 per cent to a two-year low, while regional pan-European STOXX 600 ended 2.34 per cent lower, digesting its largest weekly percentage decline in three months.