The global FX volatility index shows currency fluctuations at their highest level since the start of the Covid-19 pandemic.

The JP Morgan index shows that global currency volatility is at its highest level since 2020 when the pandemic began. The Fed’s interest rate hikes to control the inflation triggers the rise in the dollar.

Factors such as the slowdown due to the increasing Covid cases in China and the expectations that the rise in global inflation will continue are among the factors that trigger the volatility in international currencies.

The dollar is on its way to its longest weekly earnings streak since 2018, while the euro is hovering near 5-year lows. The Swedish Franc also fell to its lowest level since 2019 against the dollar.