Dollar Surge and Global Market Jitters Amid U.S.-China Growth Concerns

The dollar remains strong near a two-year high despite slight rebounds in competing currencies. Economic predictions highlight a wider U.S. growth gap compared to Europe and China, influenced by U.S. protectionism and rising gas prices. China's market faces downturns with growing investor worries.

The dollar maintained its powerful rally close to a two-year high on Friday, as investors speculated that the U.S.'s growth would outpace that of other economies. Meanwhile, Chinese blue chips experienced their largest weekly drop since 2022.

The dollar index, which measures the U.S. currency against six peers, hit a peak not seen since November 2022. Although competing currencies like the euro showed slight recoveries, they remain under the shadow of the dollar's persistent strength, prompting questions about global economic confidence.

Amidst this backdrop, factors such as expected U.S. protectionism under President Donald Trump and rising gas prices due to Ukraine's pipeline shutdown further contribute to market pressures. Concerns over China's growth and economic measures are also at the forefront of investor apprehensions, as highlighted by the significant drop in Chinese stock markets and bond yields.

(With inputs from agencies.)