2023.03.1709:48:00UTC+00U.S. Dollar Falls As Bank Worries Recede

The U.S. dollar declined against its major counterparts in the early European session on Friday amid risk appetite, as concerns over a global banking crisis eased following multi-billion-dollar lifelines for troubled U.S. and European banks.

Large US banks deposited $30 billion into First Republic Bank to shore up the beleaguered lender.

The Swiss National Bank's financial support for Credit Suisse helped restore some calm to financial markets.

Markets are pricing in another 25 basis point hike from the U.S. Federal Reserve when it meets next week.

The dollar index that tracks the greenback against a basket of other currencies fell to a 2-day low of 103.89.

The greenback fell to 2-day lows of 1.2176 against the pound and 1.0669 against the euro, from its prior highs of 1.2090 and 1.0604, respectively. The greenback may find support around 1.25 against the pound and 1.08 against the euro.

The greenback depreciated to 2-day lows of 0.6258 against the kiwi and 1.3677 against the loonie, after rising to 0.6182 and 1.3736, respectively in early deals. The currency is seen finding support around 0.64 against the kiwi and 1.32 against the loonie.

The greenback edged down to 0.9240 against the franc and 132.74 against the yen, retreating from its early highs of 0.9301 and 133.74, respectively. The greenback is poised to test support around 0.90 against the franc and 128.00 against the yen.

The greenback touched 0.6724 against the aussie, its weakest level since March 7. On the downside, 0.69 is possibly seen as its next support level.

Looking ahead, Canada PPI for February, U.S. industrial production for February and Michigan's preliminary consumer sentiment index for March are slated for release in the New York session.