US dollar index reaches highest level in almost 20 years

10-year US Treasury yield at highest since November 2018.

US dollar index reaches highest level in almost 20 years

The US dollar index on Friday has climbed to its highest level in almost 20 years with worries of economic slowdown in the US economy, the Federal Reserve raising rates, and a major selloff in US stock exchanges.

The US dollar index, used to measure the value of the greenback against a basket of six foreign currencies that include the British pound, euro, Swiss franc, Japanese yen, Canadian dollar, and Swedish krona, jumped to $104.06 around 0655GMT.

This marked the highest level of the index since Dec. 17, 2002, according to official figures.

The 10-year US Treasury yield jumped to as high as 3.102% on Thursday -- its highest since Nov. 16, 2018.

This highest level in almost four years came a day after the US Federal Reserve increased its benchmark interest rate by 50 basis points, raising investors' worries that monetary tightening could cause a slowdown in the American economy and lead to a recession.

Investors have been selling US stocks and liquidating their positions to turn towards the US dollar, which raises the value of the dollar index.

Treasury securities are viewed as a safer bet for investors, compared to stocks, since they are backed by the US government.