Despite rising in the European session, the US dollar headed for its first weekly loss since early February after showing disappointing performance this week by declining to a two -week low.
Against a basket of major currencies, the dollar index traded hovering below 103.00 after declining around 1.4% this week. Last Friday, it had soared to its highest level since January 2003 at 105.01.
The decline also followed a decline in 10 -year US treasury yields to 2.86%.
Although global stock markets also declined this week on concerns over risks to growth from aggressive tightening, the US dollar failed to rise as a safe-haven.
On the other hand, other safe-haven currencies such as the yen and the swiss franc are benefiting with the yen on track for second week gains and the franc will record its best week since March 2020.
Meanwhile, other major currencies also appreciated, mostly supported by encouraging economic data and expectations of interest rate hikes by their respective central banks.
This can be seen as the euro and the pound continue to strengthen at two -week highs against the US dollar with confidence the European Central Bank (ECB) will begin its first tightening cycle in July and the Bank of England (BOE) extending rate hikes following data. positive.
The Aussie dollar rose on the back of much stronger -than -expected inflation and employment data.
