Recession fears cut Treasury yields, removing key support for the dollar, with 10-year yields falling to a two-week low

Dollar index    chart in 60 minute intervals

The US dollar slipped against its major counterparts on Friday, extending its first weekly decline this month as investors continue to assess the Fed’s policy stance and whether aggressive rate hikes will trigger a recession.

The safe-haven currency also lost support as market sentiment improved, pushing up regional equity markets and supporting riskier currencies such as the Australian and New Zealand dollars.

The dollar index, which measures the dollar against six competitors, fell 0.2% to 104.19 in Asia. This wiped out the previous day’s 0.19% gain, which was mainly driven by the depreciation of the euro after weak European industrial production data cut bets on the European Central Bank’s tightening policy.