The dollar, a beneficiary of rising U.S. interest rates, was on track for its best annual performance in seven years. The dollar index , which measures the greenback against six major currencies, dipped 0.16%. Sterling was set for its worst performance against the dollar since 2016, when Britain voted to leave the European Union. "Averting a downturn is a tall order," said Vishnu Varathan, head of economics and strategy at Mizuho Bank, noting that the odds are stacked against economies emerging unscathed from global policy tightening. U.S. Treasuries and German bonds, the benchmarks of global borrowing markets, lost 16% and 24% respectively in dollar terms this year.

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