The dollar hit multi-year highs against the euro and yen and emerging markets were under mounting pressure on Tuesday, as the prospect of the first rise in U.S. interest rates in almost a decade stoked global volatility.
The skittish mood spread from Asia into Europe where stocks fell a second day despite the European Central Bank's new bond buying campaign continuing to push down the euro and the bloc's already record-low borrowing costs.
Driving up the dollar was speculation that the Federal Reserve will start lifting interest rates from mid-year after another stellar set jobs data on Friday and a subsequent chorus of hawkish Fed policymaker comments.
The euro's rapid melt lower was compounded by worries about Greece as euro zone finance ministers prepared to meet in Brussels, a day after the head of the group, Jeroen Dijsselbloem, had urged Athens to "stop wasting time" and start reforms.
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