The US dollar continues to extend its rise higher after receiving support from 'risk aversion' in the market heading into the weekend.
The European session saw the currency king stronger with the dollar index continuing to strengthen to a price level of 103.12, well off the one-month low of 101.92 it touched on Thursday.
Investors see the strengthening of the US dollar as a 'delayed' reaction after Federal Reserve (Fed) Chairman Jerome Powell strengthened the central bank's position to continue raising interest rates.
At the same time, the greenback also gained a boost as a safe-haven amid market fears of a recession after seeing weak manufacturing and services PMI data in the European Zone and the UK.
The euro plunged lower after data released at the start of the European session showed the manufacturing sector fell to a 3-year low and services fell to the slowest since January.
While the pound also traded gloom following the release of data that saw a contraction in the manufacturing sector in June to a 5-month low and services to the slowest in 3 months.
The weakness in the PMI data has pushed French and German 10-year bond yields down and also dragged the 10-year yield of the United States down to 3.74%.
Investors are now turning their attention to the release of US manufacturing and services PMI data in the upcoming New York session.
Following the greenback's strength, the Aussie, New Zealand and Canadian dollars also recorded significant declines as concerns dampened market sentiment.
The yen continued to trade weaker at a 7-month low against the greenback, despite receiving temporary support early in the session due to falling US bond yields.
However, compared to other major currencies, the yen strengthened as a safe-haven currency following risky market sentiment.
