Asian markets took a beating yesterday in fear of the escalating Ukrainian war and worries of rising interest rates, whilst the dollar remained strong. This led to Japan’s Nikkei dropping 2% and Australia and New Zealand’s fragile pound dropping to a 2 ½ year low. ‘Risk aversion has dominated,’ says National Australia

Bank’s currency strategist Rodrigo Catril, amid renewed Russian attacks on Ukrainian cities, and global recession fears looming.



News that unemployment in the UK was the highest since 1971 at 21.7% raised concerns as the pound lost some value. This is as doubts prevail whether Kwasi Kwarteng can rebalance the government’s finances and where all the funds would come from with his tax cut promises.

The US dollar strengthened as geo-political events made investors feel unsettled, but nerves are frazzled ahead of Thursday’s release of US inflation data which indicates another interest rate hike by the federal reserve. 

China’s Yuan was the worst-performing currency falling from 0.6% to 7.1937 against the dollar and nearing levels close to the financial crisis in 2008 as well as new concerns amidst another COVID outbreak and possible lockdowns.