FX.co ★ Dollar Rises To New 20-year High On Safe-haven Appeal

The U.S. dollar climbed to a fresh 20-year high on Monday as bond yields rose amid rising expectations the Federal Reserve will aggressively tighten its policy to combat soaring inflation.

The yield on U.S. 10-year bonds rose to 3.18% for the first time since November 2018.

A sell-off in global stock markets due to worries about slowing growth contributed as well to the greenback's uptick.

The dollar index rose to 104.19 in the Asian session, but turned a bit sluggish and kept moving in and out of positive territory thereafter. It was last seen hovering around 103.70, up marginally from the previous close.

Against the Euro, the dollar is trading at $1.0560, after having firmed to $1.0496 a unit of the European currency earlier in the day.

The dollar is slightly stronger against Pound Sterling at $1.2333, compared with $1.2340 on Friday.

The Yen has firmed to 130.25 a dollar from 130.54. Against the Aussie, the dollar is at 0.6949, firming from 0.7077.

Against the Swiss franc, the dollar is stronger by nearly 0.5%, fetching CHF 0.9932.

The dollar is stronger against the Loonie, firming to C$1.3013, gaining nearly 1%, as oil prices plunged sharply amid concerns about outlook for energy demand.