(MENAFN) The US dollar index on Tuesday jumped to its peak level since Dec. 2, 2002, as the Federal Reserve's fast financial shrinking remains to push the greenback higher.
The index, which is used to measure the rate of the US dollar against a basket of six foreign currencies such as the British pound, euro, Swiss franc, Japanese yen, Canadian dollar, as well as Swedish krona, hopped to 106.79 as of 12.20 PM EDT (1620GMT).
This marked the peak level for the US dollar index in nearly 20 years when it had reached its highest at 107.31, in line with official data.
In order to control the peakiest inflation in 40 years, the Fed has started an aggressive narrowing cycle by increasing interest rates an amount of 150 basis points since March.
The central bank is anticipated to rise an additional 75 basis points of rate hike by the end of this month.
The Fed's financial narrowing is leading to recession worries for the US and worldwide economy in general.
While US shares are experiencing a huge selloff for weeks and indices dropped into bear market territory, stockholders have been turning towards US dollar after fears around worldwide financial stoppage.
Previously on Tuesday, the euro in contrast to the US dollar dropped to 1.0235 – its worst rate in nearly 20 years.
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