LONDON—The euro and sterling fell on Wednesday as concerns resurfaced that interest rate hikes from major central banks to contain inflation run the risk of a sharp global growth slowdown or recession.
Data showing British consumer price inflation hit a new 40-year high at 9.1 percent sent sterling down almost 1 percent to a near one-week low of $1.2162, before it trimmed some of those declines. It was down 0.2 percent at $1.2254 at 1115 GMT.
With investors turning nervous again about global growth prospects, the safe-haven U.S. dollar gained ground on most peers. The yen hit a fresh 24-year low as rising U.S. and European bond yields contrasted with low Japanese interest rates….