The US dollar looks all set to post the largest weekly gain seen since the 2008-09 financial crisis over the wave of panic selling and rush for cash global markets have experienced over the past few days. At the time of writing, the US dollar index DXY is trading around 102.12.

The demand for the US dollar has soared as investors rush out of other instruments in search of greater liquidity and safety amid the heightened uncertainty in markets. The risk-off sentiment continues to dominate over rising worries that the global economy could be headed towards recession this year as a result of the coronavirus pandemic.

Businesses are also trying to increase their need for dollars to cover possible disruptions in operations due to shutdowns driven by the rapid spread of the virus. Meanwhile, traders and investors are selling off other assets like gold and stocks and moving towards the safety of the dollar even as the extent of damage the pandemic can create remains unclear.

The US dollar index has risen by around 4.5% against other major currencies so far this week. Meanwhile, against commodity currency AUD, the greenback has strengthened by nearly 30% during this period.