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Recession Fear Drives Greenback to Strongest Level Since 2020

  • Euro tumbles to two-decade low, nearing parity with dollar
  • Colombian peso slumps to all-time low amid global selloff
Money Exchange Stores in Jakarta As Dollar Surges Against Other Currencies
Photographer: Dimas Ardian/Bloomberg
Updated on

The dollar surged to its strongest level in more than two years as growing concern about recession prompted investors to pile into haven assets and riskier currencies from Hungary to Colombia were smashed in a day of busy trading.

The greenback steamrolled almost everything before it on Tuesday, rising more than 1% against most major developed market peers and there was increasing speculation that it might soon reach parity with the euro. Turnover in currency futures climbed to the highest level in close to a month while the Bloomberg dollar index -- which measures it against a basket of major counterparts, climbed 1%.