Nervous financial markets pushed the US dollar to a two-decade high on Wednesday, as rising interest rates around the world heightened fears of a recession, while the pound fell further after recent warnings about British tax cut plans.
The dollar index rose by about 0.5% to a new record level at 114.78, and its upward trend supported the continuous rise in the 10-year US Treasury bond yields, which reached 4% for the first time since 2010, and recorded 4.013%.
The US currency gained broadly, the euro fell 0.43% to $0.956, and the under pressure sterling fell 0.7% to $1.0678.
The Australian dollar, which is particularly sensitive to fluctuations in investor sentiment, fell by 1%.
The US Federal Reserve is leading the global fight against rising inflation, and has recently become more hawkish, and has indicated more interest rate increases to add to the big moves of the past few months.
Continuing to raise borrowing costs has heightened fears of a global recession, which has boosted bond yields around the world.
However, the dollar's rise against sterling was also affected by British domestic factors, after the government announced last week a plan to cut taxes and increase borrowing.
This sent sterling down to $1.0327 on Monday, a record low, after settling near the $1.1300 level ahead of the UK's budget announcement last week.
In Asia, the yen reached 144.53 per dollar, still near its lowest level in years even after Japan intervened to support the "fragile" currency last week.
The offshore Chinese yuan also fell to 7.249 against the dollar, its lowest level since this data began to be available in 2011.