U.S. Dollar Gives Back Ground After Reaching Parity Versus Euro

After seeing continued strength overnight, the value of the U.S. dollar has given back ground over the course of trading on Tuesday.

The U.S. dollar index reached a nearly 20-year high of 108.56 but is currently up a relatively modest 0.15 points or 0.1 percent at 108.17.

The greenback is trading at 136.83 yen compared to the 137.38 yen it fetched at the close of New York trading on Monday.

Against the euro, the dollar is valued at $1.0032 compared to yesterday's $1.0040. Overnight, the buck reached parity against the European currency for the first time in twenty years.

The U.S. dollar has continued to benefit from its appeal as a safe haven amid concerns about a slowdown or outright recession by the global economy.

Concerns about the emergence of a new, more infectious Covid-19 strain in several parts of the world also continued to weigh on investors' minds.

Many cities in China are already taking steps to stop the spread of the new strain, leading to worries about another round of painful lockdowns, especially in Shanghai or Beijing.

A Covid-19 resurgence and the resumption of Chinese lockdowns could put further pressure on a global economy that is already being squeezed by aggressive monetary policy tightening by the world's central banks.

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