The US dollar stabilized against major currencies in trading on Friday, driven by a sharp selling wave that hit US stocks and pushed investors towards safe assets, in conjunction with a decline in Treasury bond yields and anticipation of the release of the crucial US jobs report.
This decline in risk appetite came against the backdrop of the overwhelming victory of the Democratic Party in the midterm elections in the United States, which led US stocks to fall sharply yesterday, Thursday, as the Nasdaq index recorded its largest daily loss since April 2025. The turmoil in global markets was exacerbated this week by growing concerns about the possibilities of tightening regulatory restrictions on the artificial intelligence sector, especially with regard to the construction of data centers.
In terms of currencies and safe havens, the Japanese yen rose by 0.2%, recording the highest level in a week at 157.40 against the dollar, before retreating slightly from gains, and the Swiss franc also increased by 0.2% against the American currency. On the other hand, the dollar index – which measures the performance of the American paper against a basket of six major currencies – settled at approximately 101.55 points.
In bond markets, the demand for safe havens pushed 10-year Treasury bond yields to decline during overnight trading, recording in the latest Asian morning trading 4.84%, a level close to its lowest since the tenth of last September. For its part, the euro stabilized at $1.1222, achieving expected weekly gains of about 0.5%, ending a series of losses that extended for two weeks.
In the United Kingdom, the British pound rose by 0.1% to reach $1.3457, benefiting from the Bank of England’s decision to raise interest rates in accordance with widely prevailing expectations.
Today, Friday, the attention of the financial markets is turning to the non-farm payrolls report in the United States, with investors awaiting any indicators that reveal the direction of monetary policy and the future path of interest rates at the Federal Reserve (the US central bank).
