The dollar is rising and the yen is falling to its lowest level since 1998

The price of the dollar, which is considered a safe haven for value, rose towards its highest levels in 20 years against the major currencies on Monday, supported by fears of a global economic slowdown and the expectation of a large interest rate hike by the US Federal Reserve.

The yen was among several currencies that fell on Monday, falling to its lowest level against the dollar since 1998, as the gap between Japanese and US bond yields widened after the release of US inflation data on Friday.

The dollar index, which measures the value of the currency against six major currencies, rose 0.5% on the day to 104.75, close to its highest level in 30 years of 105.01 hit in May. It was last up 0.2 percent at 104.63.

This week, markets will focus on central banks’ measures to contain inflation.

The US Federal Reserve and the Bank of England are expected to raise interest rates and there is a possibility that the SNB will raise rates as well.

The Bank of Japan has so far resisted pressure to tighten monetary policy, which has weakened the currency. The policy divergence has sent the yen down more than 15 percent against the dollar since early March.

The yen fell 0.6 percent on the day to 135.22 yen to the dollar, its lowest level since 1998. It was last trading at 134.37 yen to the dollar.

The euro, sterling and Swiss franc fell to four-week lows against the dollar on Monday.

The euro fell 0.5 percent to 1.04560 dollars.

And sterling fell 0.8 percent to $ 1.22165 after data showed the British economy contracted unexpectedly in April.

The Swiss franc fell 0.5 percent to 0.99230 francs to the dollar.