The greenback slumped on Friday triggered by concerns of a sluggish in the US economy, which will drive Fed to adopt an aggressive dovish stance with rate cut.

The dollar index that gauges the greenback versus its major pairs dipped 0.25 to 103.997, extending its losses following a 1.7% plunge in July, its poorest performance in 2024.

Data revealed overnight that U.S. manufacturing activity declined at the quickest rate in eight months in July, and a measure of employment dropped significantly, increasing the risk of recession in the US.

It also signals that the risks associated with the key payrolls report scheduled for later in the session are tilted towards the downside.

Projections of economists’ hover around the possibility that the US economy have added 177,000 jobs in July, a decrease from the 206,000 jobs created in the previous month.

EUR/USD climbed 0.3% to 1.0820, recovering after hitting the lowest level in three weeks overnight at 1.0777.

GBP/USD slid 0.1% to 1.2734, after hitting low at 1.2708 previously, a level not seen since the 3rd of July amid BOJ dovish stance.

USD/JPY dipped 0.3% to 148.84, with the yen extending its soar after the Bank of Japan decided to raise interest rates by 15 basis points and signaled more possible raises in 2024, indicating a bolstered Japanese economy.