(Reuters) The dollar rallied on Tuesday, making the largest daily percentage gain in two weeks, as a sell-off in world stock markets spurred safe-haven bids and investors worried about slowing global growth.
“The rout in the stock market has hit extra hard and the dollar is gaining on a safe-haven bid at the moment,” said John Doyle, director of markets, at Monex Consulting in Washington.
Earlier, cautious comments overnight by Federal Reserve officials about the global economic outlook knocked the dollar to two-week troughs as they suggested the Fed could slow the pace of raising interest rates or end its tightening cycle.
