US dollar sinks vs yen

25 March, 2019 12:00 AM printer

NEW YORK: The US dollar fell against the safe-haven Japanese yen on Friday as dismal US manufacturing data fuelled worries about the wider economy, and Treasury bond yields signaled growing fears of a recession.

The US dollar, however, rose against the euro as a much weaker-than-expected German manufacturing survey raised concerns that Europe's powerhouse economy may be slowing, report agencies.

On Friday, the spread between three-month Treasury bills and 10-year note yields inverted for the first time since 2007 after US PMI manufacturing data missed estimates. This inversion of the yield curve is widely seen as a leading indicator of recession. "You have to take it seriously that it is a signal for slowing growth or a potential recession in the next 12 to 18 months.