Forex - Dollar surged against major currencies on fears of a global recession. - Forex Forum

The Dollar surged to 2-year peaks versus a basket of currencies on Friday as some economic data from Europe reinforced fears of a global recession, adding to a selling on world stock markets. The Yen rose to multiyear highs versus the Dollar and Euro on risk aversion, while the Sterling suffered its biggest one-day % drop against the Dollar since September 1992.

Worries about a world-wide recession and its impact on company profits savaged global equities, with Tokyo's Nikkei average diving 9.6% to a 5-1/2-year closing low. Stocks on Wall Street followed global markets down, with the Dow Jones industrial average dropping more than 5% at one point before recovering to close down 3.6%. That equities sell-off buoyed the low-yielding Japanese Yen as risk-averse investors dumped carry trades.

The sharp surges in the Dollar and Yen have raised concerns that financial authorities may act in the currency market to slow volatile moves. But some traders are skeptical and Central banks would l

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