Global Currencies React to U.S. Economic Concerns

The Japanese yen and Swiss franc soared to multi-month highs against the dollar due to declining U.S. manufacturing, spurring fears of an economic downturn. Meanwhile, sterling hit a one-month low amidst new interest rate cuts from the Bank of England. The euro also struggled due to dovish comments from an ECB official.

The safe-haven Japanese yen and Swiss franc neared multi-month highs against the dollar on Friday after an unexpected slump in U.S. manufacturing raised fears of an economic downturn, causing stocks and bond yields to plummet.

Sterling stumbled to a fresh one-month low following a nearly 1% plunge overnight as the Bank of England began its interest-rate cutting cycle with a finely balanced decision.

The euro languished near a one-month trough after dovish comments from a European Central Bank official.