News: FOREX-Dollar hits two-decade high amid rising US rates, Ukraine war, China's lockdowns

• Dollar index equals Friday's near 20yr peak
• AUD, NZD slide as Asia's stockmarkets tumble
• U.S. CPI data is next upside risk - analysts

The dollar hit a two-decade high on Monday as investors searched for safety and yield due to growing concerns over slowing global economic growth and rising interest rates.

Surging inflation, the war in Ukraine, and tighter lockdowns against COVID-19 in Beijing and Shanghai, have left investors uncertain on many counts, but they are sure that U.S. interest rates are going up -- and the dollar is following.

"Moves in U.S. interest rates are not the only dollar support," said strategists at NatWest Markets in a note.

"Downside risks to global growth stemming from Ukraine and China are more pressing for Europe and Asia relative to the U.S., creating an air of 2018-style dollar exceptionalism."

The greenback made a 22-month high on the growth-sensitive New Zealand dollar and rose 1% to a three-month high against the Australian dollar as Asia's stockmarkets tumbled. It rose 0.3% to its highest since 2019 on the Swiss franc.

The euro was down 0.4% at $1.0508 EUR=EBS and a whisker above a recent trough of $1.0469. The yen JPY=EBS was close to two-decade lows at 130.96 per dollar, while sterling GBP=D3 wallowed at $1.2294, barely above Friday's 22-month low. The Canadian dollar CAD=D3 hit its lowest since December.

In China trade data showed imports flatlined in April and exports rose 3.9% - a little better than expected and enough to hold the Australian dollar AUD=D3 at $0.7006 and off January's low of $0.6967.

However the yuan CNY=CFXS was dragged to a fresh 18-month low of 6.7110 per dollar as lockdowns in Shanghai were tightened. Traders see the fallout from the inevitable drag on China's economy raking across the region.

The kiwi NZD=D3 fell 0.9% to $0.6346 and the U.S. dollar made multi-year highs on the trade-sensitive Taiwan dollar TWD=TP , South Korean won KRW=KFTC , Singapore dollar SGD=D3 and Malaysian ringgit MYR=MY .

It hit its highest in nine months against the Indonesian rupiah IDR= .

FORGOTTEN DREAM The yield on benchmark 10-year U.S. government bonds US10YT=RR has climbed a staggering 163 basis points this year and taken the dollar with it.

The dollar index =USD is up nearly 9% for the year and gained for a fifth week in a row last week. It equalled Friday's near 20-year high of 104.070 during the jittery Asia session.

Speculation that Russian President Vladimir Putin might declare war on Ukraine in order to call up reserves during his speech at "Victory Day" celebrations also hurt market sentiment.

Putin has so far characterised Russia's actions in Ukraine as a "special military operation", not a war, or an invasion.

The U.S. Federal Reserve hiked its benchmark funds rate 50 basis points (bps) last week and strong jobs data has reinforced bets on further big hikes, with inflation figures due on Wednesday in focus as next risk of an upside surprise.

Futures markets are pricing a 75% chance of a 75 bp rate rise at the Fed's next meeting in June and more than 200 bps of tightening by year's end. 0#FF: FEDWATCH

"Risks around U.S. CPI feel binary; a moderation from 8.5%would be mildly comforting, but a lift would doubtless revive expectations for 75 bp Fed hikes, and probably give the dollar a boost," said analysts at ANZ Bank.

"The idea that synchronised global tightening might proceed gently now feels like a forgotten dream."

Cryptocurrencies have been battered in the rush from risky assets and bitcoin BTC=BTSP= was nursing weekend losses and near its lowest levels of the year at $33,780 while ether ETH=BTSP , which fell 4% on Sunday, was at $2,470.

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	Currency bid prices at 0041 GMT 

 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
											  Previous				   Change				  
											  Session											
 Euro/Dollar	   EUR=EBS	$1.0526		$1.0548	 -0.21%		 -7.42%	  +1.0565	 +1.0526 
 Dollar/Yen		JPY=EBS	130.9050	   130.5600	+0.27%		 +0.00%	  +130.9500   +130.7300 
 Euro/Yen		 																			 
 Dollar/Swiss	  CHF=EBS	0.9901		 0.9884	  +0.15%		 +8.52%	  +0.9903	 +0.9892 
 Sterling/Dollar   GBP=D3	 1.2317		 1.2339	  -0.15%		 -8.90%	  +1.2355	 +1.2320 
 Dollar/Canadian   CAD=D3	 1.2931		 1.2910	  +0.17%		 +0.00%	  +1.2931	 +1.2903 
 Aussie/Dollar	 AUD=D3	 0.7024		 0.7074	  -0.71%		 -3.37%	  +0.7076	 +0.7022 
 NZ				NZD=D3	 0.6378		 0.6405	  -0.42%		 -6.82%	  +0.6404	 +0.6378 
 Dollar/Dollar																				   

All spots FX= Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX

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World FX rates	https://tmsnrt.rs/2RBWI5E 

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