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The dollar hit a four-month high on Wednesday, March 24, as concerns about a third wave of the Covid-19 pandemic in Europe, the prospect of a tax hike in the United States, and mounting tension between the West and China weighed on risk appetite.
The dollar index rose to a four-month high of 92.608 in early London trade, the highest level since November 23.
The index, which measures the strength of the US currency against a basket of currencies, rose about 3% since the beginning of the year, contradicting the expectations of a large number of locals for its decline.
The euro hit its lowest level in four months at $1.1812 after Germany extended the delay in lockdown measures and urged citizens to stick to homes during the Easter holiday.
And appetite for safe assets received an additional boost when US Treasury Secretary Janet Yellen told lawmakers that higher taxes would be needed in the future to offset payments for infrastructure projects and other public investment.
The imposition of human rights sanctions by the United States, Europe and Britain on China, which has also responded with sanctions, exacerbated market concerns.
The safe-haven yen, which gained in Asian trade, slipped 0.1% in early London trading. The Australian dollar fell again today, as it fell to $ 0.7582, a level not seen since the fifth of February.
The British pound fell to $1.3675, also the lowest level since early February.
As for cryptocurrencies, it won in the form of 4% to $ 56,500, from a record high of $61,781.83.
