Although the US dollar has fallen slightly, it is seen to have failed to help equities soar as uncertainty over the prospect of interest rate hikes widens.
During the European trading session, the dollar suffered a fall following the news in China that the zero Covid-19 policy will be ended and replaced with new preventive measures.
However, the losses were reversed during the New York session after Russian President Vladimir Putin said that the war between Russia and Ukraine is expected to drag on for a long time after issuing a warning of using nuclear weapons as a defense.
The news was accompanied by concerns about the question of the Federal Reserve's (Fed) interest rate hike next week which added to the market's uncertainty, at the same time depressing equities.
Wall Street's major indexes showed the Dow Jones Industrial average flat while the S&P 500 lost 0.19% and the Nasdaq Composite fell 0.51%.
Europe's STOXX 600 index closed 0.62% lower, a 4-session decline while the global MSCI gauge shed 0.42%.
The Asian trading session saw Japan's Nikkei 225 down 0.45%, Topix down 0.47%, Australia's S&P/ASX 200 down 0.26% while South Korea's Kospi and Kosdaq were flat.
For now investors are still puzzled by the prospect of a rate hike based on Jerome Powell's dovish comments last week but economic data is seen as giving the Fed room to implement an aggressive tightening policy.
Also yesterday the central bank of Canada (BOC) implemented a 50 basis point increase to 4.25% while policy meetings by the Fed, Swiss National Bank (SNB), Bank of England (BOE) and European Central Bank (ECB) are scheduled for next week.
In the meantime, US Treasury yields also experienced a fall with the 10-year benchmark falling 9.2 points to a 3-month low of 3.421% with the inversion of the curve which is a measure of recession growing -84.5 points.
