By Alun John

HONG KONG, (Reuters) – The dollar opened the week at a new 20-year high. This was due to investors seeking safety from fears of global growth. However, cryptocurrency markets seemed to be stabilizing after last week’s turmoil.

It was trading at 104.54, after briefly crossing the 105 mark on Friday. This is its highest level since December 2002.

Due to concerns regarding the U.S. Federal Reserve’s ability to control inflation and not cause a recession, as well as worries about slower growth due to the Ukraine crisis or the economic impact of China’s Zero-COVID-19 policies on the economy, many investors flock to the safe-haven currencies.

According to the statement, “Broad USD strength has been supported by a growing global growth concern.” Barclays (LON:) analysts.

According to them, the U.S. production and retail data are due Tuesday. They also mention public remarks by several Fed officials.

“For now, our focus is on any potential pushback or reiteration of the fact that rate hikes at 75 basis points are not on the table.”

According to CME’s Fedwatch, markets are anticipating 50 basis points increases at the Fed’s next meeting. However, there is always the chance of higher increases.

The agenda includes data on Chinese production and retail, which are due Monday afternoon.

Barclays stated that a weaker outlook for China’s growth is likely to put pressure on commodity G10 currencies and keep the USD in support.

The weak dollar and the European economic’s vulnerability to the Ukraine conflict caused the euro to languish at its lowest point since 2017 when it began the week.

On Monday, the single currency stood at $1.0398. This was just above its $1.0354 low on Thursday. Its lowest level since January 2017.

This week, investors can watch a number of speeches by top European Central Bank officials.

Sterling was down along with euro at $1.2256. Last week’s drop to $1.2156 caused by weaker first quarter GDP numbers.

This week in Britain, we have data about the labor market, inflation and consumer sentiment.

On Monday, the Japanese yen traded at 129.43 Japanese yen/dollar. The Japanese yen managed to make gains last week, its first since March. This was due to growing fears and the halting of U.S. Treasury yields’ march higher.

The yen’s vulnerability to rising U.S yields is due to Japan’s yield stability.

The quiet weekend for crypto markets after last week’s chaos, when TerraUSD (a stablecoin) broke the dollar peg.

It was around $31,000, but it dropped to $21,400 Thursday. This is its lowest level since December 2020.