The dollar emerged as the latest victim of this week's market turmoil as the worsening trade war risks derailing the US economy. A gauge of the greenback tumbled to a fresh six-month low overnight, and stock-index futures swung between gains and losses.

The euro surges to a three-year high against the dollar as investors seek havens and non-US alternatives. The yen also rallies while gold hits a fresh record. Stocks in Asia drop while US and European equity futures edge up after the S&P 500 fell 3.5% Thursday.

US Treasuries slide as their safe-haven status is now being questioned. China may be selling Treasuries in retaliation against higher US tariffs, according to a note from SMBC Nikko Securities.

The cost of hedging against further slides in the US dollar climbed to the highest since the Covid pandemic shuttered cities in early 2020.

US leveraged-loan funds had their biggest-ever weekly outflow as investors dump corporate debt across the board on concern that the tariff-spurred market turmoil will hit the economy.