NEW YORK, July 14 ― The dollar resumed its relentless rise today, driven by both expectations for faster Federal Reserve policy tightening and safe-haven flows amid growing fears of a recession.

The greenback charted new 24-year highs above ¥128 (RM4.11) and edged back toward parity with the euro, after briefly breaching the level overnight.

Meanwhile, Singapore's dollar and the Philippine peso surged against their US peer after their respective monetary authorities surprised by tightening policy in off-cycle moves.

The buck was 0.37 per cent higher at ¥137.935 after reaching 138.015 for the first time since September 1998.

The euro weakened 0.39 per cent to US$1.0020. It touched US$0.9998 yesterday for the first time since December 2002.

US consumer price figures overnight showed inflation, already at four-decade highs, accelerating even further.

“The bottom line is US inflation momentum is rising,” Commonwealth Bank of Australia analyst Kristina Clifton wrote in a client note.

“Stubbornly high inflation increases the risk that the FOMC continues to hike aggressively and triggers a recession,” she said. “We expect that recession fears will continue to support USD.”

Traders ramped up bets that the US central bank could raise rates by 100 basis points when it meets on July 26-27. A hike of at least 75 basis points is seen as almost certain.

Atlanta Fed President Raphael Bostic added weight behind the speculation, saying the higher-than-expected inflation print puts a full-point increase on the table.

The Bank of Canada later surprised markets with a percentage-point rate, further stoking Fed bets.

The greenback gained 0.11 per cent on Canada's loonie to C$1.2293 today, but after losing 0.32 per cent overnight.

The US currency slid 0.56 per cent to S$1.3960 and plumbed 1.3929, the lowest since July 1, after the Monetary Authority of Singapore (MAS) tightened policy today outside of its scheduled meetings to combat soaring inflation.

The greenback lost as much as 0.52 per cent to 56 Philippine pesos as the central bank surprised with a 75 basis-point hike.

The New Zealand dollar dropped 0.31 per cent to US$0.61125, heading back toward yesterday's two-year low of US$0.6081, getting little support from the central bank's as-expected half-point rate hike that day.

The Australian dollar was little changed at US$0.67605, erasing an earlier loss after data today showed the jobless rate diving to a 48-year low and as prices of key export iron ore rebounded.

Sterling slumped 0.4 per cent to US$1.1847, sinking back toward a two-year low of US$1.18075 reached earlier in the week. It had gotten some small respite overnight from data showing the British economy unexpectedly expanded in May. ― Reuters