Forex trends: buck’s spiking, while global stock market tumbles

During early Asian session, Friday the greenback drifted higher versus majors, hitting fresh multi-month highs against the European rivals. Along with the dollar’s surge, stocks slumped around the world, intensifying risk aversion and interest in the world's reserve currency.

The greenback touched 1.3671 against the euro around 8:05 pm ET Thursday, the highest level since May 20, 2009. This may be compared to Thursday's New York session closing value of 1.3724. EUR/USD rally is presently worth 1.37 with 1.343 seen as the next likely target level.

Against the Swiss franc, the greenback rose to more than a 5-month high of 1.0697 at the same time, compared to 1.0671 hit late New York Thursday. If USD/CHF pair gains further, it may challenge resistance near the 1.071 level. The pair is presently quoted at 1.0660.

The US currency also surged higher to 1.5731 against the pound around 8:05 pm ET Thursday and this set the highest mark for the buck since October 13, 2009. The cable is currently quoted at 1.574, compared to 1.5758 hit late New York Thursday. If the greenback breaches the 1.571 resistance, it could set its strongest level in more than 8-1/2 months.

The US dollar drifted higher to 89.75 against the Japanese yen around 7:00 pm ET Thursday, compared to Thursday's New York session closing value of 88.95. USD/JPY rally held steady thereafter and is presently quoted at 89.7 with 90.6 seen as the next target level.