US Dollar Soars Fresh 20Yr High At 114.53, Recession Fear Spurs: Asian Peers Down

Monday, the US Dollar index is soaring to a fresh 20-year high, as recession fears weighed in the US. Reaching a new high, US Dollar hit 114.53 today, pulling the major Asian peers down. Indian Rupee fell past 81.50, while the Sterling as much as 4.9% to an all-time low of $1.0327. The euro also hit a fresh 2-decade low against the greenback. A consistent rate hike by the central banks to control inflation is triggering the fear of possible recession, which is strengthening the US dollar as a safe haven. Gold and silver are also sharply down now after latest the US Fed rate hike, keeping the US dollar in a favorable position.

"The world's three largest economies-the United States, China, and the euro area-have been slowing sharply. Under the circumstances, even a moderate hit to the global economy over the next year could tip it into recession," the World Bank stated recently, which is worrying investors.

"Global growth is slowing sharply, with further slowing likely as more countries fall into recession. My deep concern is that these trends will persist, with long-lasting consequences that are devastating for people in emerging market and developing economies...Policies should seek to generate additional investment and improve productivity and capital allocation, which are critical for growth and poverty reduction," commented World Bank Group President David Malpass on the matter.

Meanwhile, today Brent crude dropped below $85 a barrel, and Brent futures for November were trading down more than 1% around $84.92. Similarly, the West Texas Intermediate futures also plunged to around $77.93.

With the soaring US Dollar, the Asian stock markets are under pressure in response to that. KOSPI was down sharply by 3.02%, stood at 2,220.94, and Hang Seng Index was down by 0.67%, stood at 17,813.21, and SENSEX was down by 1%, stood at 57,515.06 at the time of writing.