Dollar up, stocks down as new rate hike looms

HONG KONG: The dollar surged on Wednesday against other major currencies and equities sank after a forecast-beating United States economic report gave new life to talk of a third straight interest rate hike next month.

The services sector data showed that the world's top economy remained resilient in the face of surging prices and borrowing costs, highlighting the job the Federal Reserve (Fed) has in taming inflation while trying to prevent a recession — a goal many observers doubt can be achieved.