LONDON, April 25 Reuters The U.S. dollar marched to a twoyear high on Monday as a wave of risk aversion swept global markets, while the Chinese yuan was set for its biggest threeday losing streak in nearly four years on growing worries of an economic slowdown in China.
With war in Ukraine entering a third month and growing concerns of a Chinawide COVID19 outbreak sparking a rout in Chinese stocks, investors dumped currency market darlings like the Aussie and the offshore Chinese yuan .
Against a basket of its rivals , the dollar gained 0.6 to 101.62, a level it last tested in March 2020, and is on track for its biggest daily rise since March 11.
The dollar will stay supported before the Fed meeting next week and many commodity currencies that have done well this year are now seeing the bar raised, said Kenneth Broux, a currency strategist at Societe Generale in London.
The Aussie, which was one of the biggest gainers in currencies in the first quarter of 2022 thanks to surging commodity prices, fell widely. It weakened more than 1 against the U.S. dollar and fell by a similar margin versus the Swiss franc .
The Norwegian crown also fell more than 1 versus the dollar.
BofA Securities strategists said that despite the pick up in currency market volatility, investors were long the Canadian dollar, Aussie and the euro.
The euro39;s tiny gains after French President Emmanuel Macron39;s comfortable election victory over farright rival Marine Le Pen quickly dissipated,…