Dollar Slips Amid Economic Concerns and Strong Safe-Haven Currencies

The dollar saw a decline on Friday with investors worried about potentially weak U.S. payroll data, spurred by an unexpected drop in U.S. manufacturing that raised concerns over a slowdown in the world's largest economy. This shift bolstered traditional safe-haven currencies.

The yen firmed, pushing the dollar down by 0.3% to 148.90, building on gains following Bank of Japan's decision to raise interest rates. Similarly, the Swiss franc gained 0.1% to 0.8718 per dollar, reaching its highest level since early February earlier in the session.

Market indicators are predicting a 26.5% chance the Federal Reserve may cut interest rates by 50 basis points in September, rising sharply from 12% the day prior. Traders are also expecting 85 basis points of cuts in the remaining three meetings this year, with the economic outlook facing a crucial test with the release of monthly payroll figures later on Friday.

(With inputs from agencies.)