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

The yen was among several that fell today;

It fell to its lowest level against the dollar since 1998, with the gap between Japanese and US bond yields widening after US inflation data was released last Friday.

And the dollar index - which measures the value of the currency against 6 major currencies - increased 0.5% during the day to 104.75 points, approaching its highest level in 30 years, of 105.01 recorded last May, and also rose in the latest trading to 104.69.

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, and the divergence of policies has led to the yen's decline by more than 15% against the dollar since early March.

The yen fell 0.6% on the day to 135.22 yen to the dollar, its lowest level since 1998, but was last settled at 134.5 yen to the dollar.


Traditionally, the weak yen, the Bank of Japan and major corporations are viewed favorably by the Japanese government because this exchange rate trend makes Japanese companies' exports more competitive and magnifies their profits abroad.

But this rhetoric is no longer viewed favorably in the country because the sharp increase in the cost of imports amplified by the depreciation of the yen is eroding the purchasing power of Japanese households.

The euro, sterling and Swiss franc also fell to 4-week lows against the dollar today:

  • The euro fell 0.5% to 1.04560 dollars.

  • Sterling fell 0.8% to $ 1.21165 after data showed the British economy unexpectedly contracted in April, before continuing to decline.

  • The Swiss franc fell 0.5% to 0.99230 francs to the dollar.

Bitcoin drops below $25,000

Bitcoin fell to an 18-month low on Monday, below $25,000, due to investors shunning risky assets amid jittery global markets.

At a time when stock markets around the world have fallen as investors flock to the dollar as a safe haven, Jeffrey Haley, an analyst at OANDA Corporation, said that "the biggest downturn is likely to happen in the cryptocurrency world."


The most famous digital currency fell about 10% at around 8:40 GMT to $ 24,580, a decrease of more than 65% compared to the highest levels recorded by Bitcoin in November 2021 and its lowest levels in December 2020.

While the cryptocurrency market was worth over $3 trillion at its peak 7 months ago, it is approaching $1 trillion according to Coingecko, which tracks over 13,000 different cryptocurrencies.

In 2021, this still nascent sector has attracted a growing number of traditional financial investors whose appetite for risk has opened up the ultra-loose policies of central banks around the world.

However, the increase in the interest rate on the dollar, which was decided by the US Federal Reserve to stop the hyperinflation, is weighing on the markets.

While the cryptocurrency market was worth over $3 trillion at its peak 7 months ago, it is approaching a trillion dollars

In addition, the decline of bitcoin accelerated "after the Celsius platform suspended withdrawals," according to Mark Heffley, an analyst at UBS.

This $12 billion company is especially suggesting to its users to use their "historic" cryptocurrencies such as bitcoin and ether to invest in new digital currencies.

Last October, Celsius raised $400 million from the Quebec Deposit Fund, which expressed its satisfaction with the partnership with "the world's leading provider of cryptocurrency loans."

The platform announced on Monday that "due to severe market conditions, we are suspending all withdrawals and transfers between accounts."

“There is a downturn in the cryptocurrency space and it is likely to get worse,” said Neil Wilson, an analyst at Markets.com.

In early May, the cryptocurrency Terra, which is supposed to be pegged to the dollar, collapsed, sparking investor fears.