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Dollar Up Over Renewed Recession Fears By

© Reuters.

By Zhang Mengying – The dollar was up on Wednesday morning in Asia as renewed recession fears sent investors to safe-haven currencies.

that tracks the greenback against a basket of other currencies inched up 0.08% to 106.62 by 01:41 AM ET (0541 GMT).

The pair fell 0.48% to 135.21. The yen gained a little support from some safety bids.

“So far the yen is the currency of choice as it sucks in the mandatory safe-haven flows,” City Index senior market analyst Matt Simpson told Reuters.

“Yet momentum remains low relative to overnight moves, suggesting traders are erring on the side of caution without venturing into panic mode – on hopes that the dire data from Europe doesn’t lead to contagion,” Simpson added.

The pair was down 0.26% to 0.6784, and the pair fell 0.23% to 0.6153.

The pair edged down 0.17% to 6.7085, while pair eased 0.26% to 1.1925. tottered after the resignations of two senior UK cabinet ministers over his leadership.

The fell 0.22% to 1.0246.

“There’s no investment case to be a long euro right here, right now. No one’s buying euros other than just as a trade, ”Pepperstone head of research Chris Weston told Reuters. He pointed to a 100% rally in European gas prices in the last 16 days which he said had left the European Central Bank with a brutal juggling act.

“You’ve got high inflation which they need to raise rates towards, but you’ve got a trade deficit in Germany now and falling growth. It’s not even a matter of recession, it’s a question of how deep that recession gets and how prolonged, ”Weston added.

Elsewhere, The an interest rate hike by 50 basis points to, in line with’s expectations.

Investors now await the g, due later in the day, which is almost certain to sound hawkish.

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