By Gina Lee

Investing.com – The dollar was up on Friday morning in Asia, as U.S. Treasury yields retreat and fatigue after the greenback’s 10%, 14-week surge.

By 11:45 ET (03:45 GMT), the index that measures the greenback’s performance against other currencies had risen 0.35%, to 102.94 (3:45 GMT). After climbing to 105.01 in January 2003, the index fell 1.5% over the past week.

It climbed 0.3% to 127.84.

It was 0.45% lower at 0.7015. The pair dropped 0.11% towards 0.6371.

Both were up by 0.22% to 0.667282 and the pair fell by 0.10% at 1.2447

As aggressive monetary tightening led by the U.S. Federal Reserve (USF Reserve) and China’s COVID-19 pose threats to growth, global shares keep falling. As investors turned to Treasury bonds as safe haven, the U.S. yields fell and the dollar lost its safety-haven appeal.

The benchmark fell overnight to a more than three-week low of 2.772%, from a three-and-a-half-year high of over 3.2% earlier in the month.

OANDA’s senior analyst Edward Moya stated in a note that the dollar was ready for a pullback. “Across the board, weakness may continue for some time.”

With the dollar dropping 1.16%, the Japanese yen saw a second weekly increase. The previous Friday’s drop was 1.26% at 127.785yen.

There are growing concerns that the Fed, and other central banks, have not kept up with inflation control and they will be forced to tighten their policies. Inflation driven by commodity prices is being affected by the ongoing conflict in Ukraine that was triggered on February 24th, Russia’s invasion.

China’s future in Asia Pacific is unclear as China continues to lock down its COVID-19 areas. However, Shanghai plans to open up more COVID-free zones to permit businesses to resume their normal operations starting June 2022.

Some support was given to Antipodean currencies by indications of China’s opening up. On Friday, the Australian dollar declined while its counterpart in the United States jumped a little after Thursday’s surge by 1.33%.

“China’s strict lockdowns are the main reason why the Australian dollar has diverged so much from the level implied by its fundamentals,” Commonwealth Bank Of Australia analyst Carol Kong said in a note.

“We remain confident the Aussie can rebound strongly once lockdowns are eased because of China’s commitment to ramp up infrastructure spending.”

It will also announce its policy decision on Wednesday.

Analysts at Westpac cautioned against counting out the dollar, even though it was showing some signs of weakness.

“It’s still far too early to call a long-term peak, amid unsettled global market conditions and a resolute Fed,” they said in a research note, recommending buying on dips in the 102s and targeting 105 multi-week.