On Wednesday, nervous financial markets sent the safe-haven dollar to a two-decade high as increasing global interest rates fueled recession fears, while sterling fell after the latest warnings about Britain’s drastic tax cuts.

The US dollar index increased approximately 0.5% to 114.78, aided by an equally unrelenting rise in benchmark US 10-year Treasury rates, which reached 4% for the first time since 2010, reaching as high as 4.013%.

The dollar’s gains were broad based, with the euro down 0.43% to $0.956, under-fire sterling down a 0.7% at $1.0678 and the Australian dollar , which is particularly sensitive to swings in investors sentiment, down 1%.

“Resistance (to dollar strength) is futile,” ING analysts headlined a morning note.

“Whether it be U.S. data surprising on the upside, the U.S. Administration showing no concern at all with the strong dollar, or new chapters in the energy war in Europe, it looks like all systems are go for the dollar rally.”

The rising borrowing costs have intensified fears of a global recession, adding to the surge in bond yields worldwide.

But the dollar’s gains against the pound have also been driven by British domestic factors after the British government, last week announced a plan to slash taxes and ramp up borrowing.

That sent the pound down as low as $1.0327 on Monday, a record low, having held near the $1.1300 level before last week’s UK budget.