The dollar strengthened to its highest level in more than 10 years against a broad basket of peers as a standoff between Greece and its European creditors and tenuous peace talks with Russia over Ukraine sent volatility soaring.

Investors are fleeing riskier emerging-markets currencies including the Brazil™s real and South Africa™s rand as concern increases that geopolitical turmoil will add to the slowdown in global economic growth. Central-bank measures from Europe to Australia are raising speculation that many nations are actively seeking to drive down their exchange rates to lift growth and inflation in what traders refer to as a currency war.

The Bloomberg Dollar Spot Index advanced 0.5 percent to 1,174.87 as of 5 p.m. in New York, the highest close since December 2004, when data begins.

The greenback added 0.9 percent to 120.46 yen and slipped 0.1 percent to $1.1336 per euro.

Source : Bloomberg