LONDON—Gathering gloom about prospects for the global economy lifted the safe-haven dollar on Friday and pressured risk-sensitive currencies, with the Australian dollar tumbling to a two-year low.
Rampant inflation and a rush by central banks to raise rates and stem the flow of cheap money has fuelled sell-offs across markets and lifted assets seen as safer bets.
Fresh data on Friday showed eurozone inflation hit another record high in June, while separate statistics showed manufacturing production in the bloc fell for the first time in two years.
The dollar index—which tracks the greenback against six counterparts—is on track for a nearly 1 percent weekly gain, and was last up a quarter of a percent on the day at 105.020….