2019.08.2817:03:00UTC+00Dollar Stays Firm Against Rivals Amid Recession Fears

The U.S. dollar exhibited strength against rivals on Wednesday amid rising fears over a possible global economic recession.

Earlier in the day, the negative spread between the ten-year and two-year yields widened to its lowest level since 2007, with an inverted yield curve widely seen as an indicator that a U.S. recession is looming.

The dollar index advanced to 98.25, gaining 0.25% after opening at 98.25, its previous closing level.

Against the Euro, the dollar strengthened to 1.1074, gaining nearly 0.2%.

In euro area economic news, data from the Federal Statistical Office showed that Germany's import prices declined for a third straight month in July. They declined 2.1 percent year-on-year in July following a 2.0 percent decrease in June. Economists had expected a 2.0 percent fall.

Against Pound Sterling, the dollar was up as much as 0.63% at 1.2213. Britain's Queen Elizabeth has approved Prime Minister Boris Johnson's plan to suspend parliament, according to a statement from the Privy Council.

The statement confirmed that parliament would be suspended on a day between Sept. 9 and Sept. 12, until Oct. 14.

As the opposition MPs are now unlikely to get time to approve any legislation that would thwart crashing out of the European Union without a deal, a no-deal Brexit appears very likely.

The Yen, which hit a 30-month high of 104.44 a couple of sessions ago, was down 0.35% against the greenback in late afternoon trades Wednesday, with a unit of the greenback fetching 106.12 yen.

The dollar was up marginally against Swiss franc with the pair trading at 0.9819. The Swiss investor sentiment index slipped to the lowest level since January, falling to -37.5 in August from -24 in the previous month and compared with -14.3 in the same month of the prior year. It was the lowest reading since January, amid increasing global growth concerns.

Against the loonie, the dollar gained 0.17% at 1.3305, and against the Aussie, it was up 0.27%, with the Aussie-Dollar pair trading at 0.6734.