Reuters reported that Minneapolis Fed president Neel Kashkari was speaking on Sunday in comments to CBS show Face the Nation.

´´Recent stress in the banking sector and the possibility of a follow-on credit crunch brings the US closer to recession. It definitely brings us closer," Kashkari said.

"What's unclear for us is how much of these banking stresses are leading to a widespread credit crunch. That credit crunch ... would then slow down the economy. This is something we are monitoring very, very closely."

US Dollar update

The US Dollar rose on Friday as banking stocks plunged in Europe with heavyweights Deutsche Bank and UBS Group pummelled by worries that the worst problems to hit the sector since the 2008 financial crisis have not yet been contained. The dollar index, or DXY, rose 0.51% ands printed a high at 103.350,