oct 11 reuters  the dollar loomed large over fragile financial markets on tuesday with worries about rising interest rates global growth and geopolitical tensions unsettling investors while the yen was testing levels that have prompted official intervention the yen hit 14580 per dollar overnight just 10 pips short of the 24year trough it made before the japanese government stepped in to prop it up three weeks ago japan returned from a holiday on tuesday and the yen sat at 14565 strong us labour data and an expectation of inflation figures due on thursday to remain stubbornly high have all but dashed bets on anything but high interest rates through 2023 and are driving the dollar back toward multidecade highs russia rained missiles upon ukraines cities on monday in retaliation for blast that damaged the only bridge linking russia to the annexed crimean peninsula with the escalation putting markets in a riskaverse mood the risksensitive australian dollar made a 212 year low of 06275 on monday and hovered at 06296 early on tuesday analysts at the national australia bank said the aussie was the markets whipping boy in a sell off and that further lows were possible in the near term as sentiment is fragile the new zealand dollar also made a 212 year low at 05545 on monday and is close to breaking its pandemic trough with weak data from china further souring the mood our expectation for the world economy to enter recession next year is consistent with further gains in the dollar said commonwealth bank of australia strategist carol kong us dollar index was up 0053 at 11312 not far off the 20year high of 11478 it touched late last month britains markets remain on edge and not exactly soothed by the bank of england stepping up bond buying and finance minister kwasi kwarteng promising to bring forward some budget announcements gilts sold sharply overnight and sterling was wobbly sliding to a 10day low of 11027 on monday the pound was up 028 at 11090 on tuesday reporting by tom westbrook in sydney and ankur banerjee in singapore editing by lincoln feast