Dollar Surges as Federal Reserve Spurs Global Slowdown Concern

The dollar surged the most in two months against the euro after the Federal Reserve yesterday said economic growth had slowed, fanning concerns that the global recovery won’t be sustained.

The yen strengthened to the most since July 1995 versus the dollar after a report showed Chinese industrial output grew at the slowest pace in 11 months, spurring demand for safer assets. The pound plunged for the third day against the dollar after the Bank of England reduced its forecast for economic growth and inflation and a report showed consumer confidence slumped.