Australian bonds slid, and the currency jumped, after the nation's central bank increased borrowing costs by more than many had expected
The dollar index had reached a five-year top of 103.28, and a further push above 103.82 would see it to levels not visited since late-2002
Global stock markets and Wall Street futures sank Wednesday after a Federal Reserve official's comments fuelled expectations of more aggressive U.S. rate hikes and the White House announced more sanctions on Russia. London and Frankfurt opened lower. Tokyo and Hong Kong fell, while Shanghai was little changed. Oil prices rose more than $1 per barrel. Wall Street's S&P 500 index tumbled 1.3% on Tuesday after Fed Governor Lael Brainard said reining in inflation that is at a four-decade high is of paramount importance. Brainard said the Fed is set to keep raising rates after its March hike, its first in four years, and might decide at its May meeting to reduce bond holdings at a rapid pace. The White House said Western governments will ban new investment in Russia following evidence its soldiers deliberately killed civilians in Ukraine. The U.S. Treasury said President Vladimir Putin's government will be blocked from paying debts with dollars from American financial institutions, .
Oil prices fell and European stocks rose on Monday as investors weighed positive comments from ceasefire talks between Russia-Ukraine, while US Treasury yields hit two-and-a-half year highs
Spot gold was down 1.1% to $1,973.80 per ounce by 1531 GMT, but remained poised for a weekly rise of about 0.3% as concerns over the course of the Ukraine conflict kept investors on their toes
Gold prices rallied to an over two-month high earlier in the week as heightened tensions over Ukraine and increased market volatility ratcheted up interest in safe-have bullion.
In the wake of Friday's inflation data, fed fund futures fully priced in a quarter-point tightening by July 2022 and another rate increase by December
The dip in the greenback pulled the dollar index to a one-month low in Asian hours
U.S. gold futures edged 0.2% higher to $1,741.00.
If inflation reaches the Fed's goal while the unemployment rate is below 4% that may be a signal that the economy could be overheating
The central bank will seek to prevent too much inflation from breaking out in an economy it believes is getting close to operating at its full potential
Republican Donald Trump's victory in America's November 8 presidential election has led investors to bet inflation could rise
December rate hike likely to stay on course; Fed's glacial pace of tightening could be influenced though
Philadelphia Fed President Patrick Harker said he expects US rates to move 'meaningfully' away from near zero in the second half of 2016
The barometer 30-scrip sensitive index of the BSE edged-lower by 48 points or 0.19%.