The dollar index fell by 0.21 percent to 104.07 on Friday, following actions taken by authorities and banks in the United States to support a struggling bank, aimed at alleviating pressure on the financial system, which restored some investor confidence and halted the outflow of customer deposits.
Major U.S. banks injected $30 billion in deposits into First Republic Bank to rescue it after it became embroiled in the crisis triggered by the collapse of two other mid-sized American banks last week.
The bank's rescue increased global risk appetite on Friday, paving the way for gains in risk-sensitive currencies like the Australian and New Zealand dollars. Three U.S. banks received support from regulators and other banks. In this context, Credit Suisse became the first major global bank to receive emergency support from the Swiss central bank since the financial crisis.