The dollar was widely weaker versus other major currencies on Friday, as concerns about the banking sector fueled speculation about rate cuts later this year, ahead of the much-anticipated monthly U.S. employment data.

The pound soared to its highest level in almost a year, the euro rebounded from losses suffered during Thursday’s European Central Bank meeting, and the yen was set for its first weekly gain in over a month, boosted by safe haven buying.

The dollar index, which measures the greenback’s value against other major currencies, was down around 0.15% at 101.23 and set for a second straight week of falls.

Growing expectations for a Federal Reserve rate cut later this year has dimmed the outlook for the dollar, while fresh turmoil among U.S. banks has ratcheted up recession risks and added to speculation that the Fed will soon reverse course.

The central bank hiked rates by a quarter point on Wednesday and signaled it may pause an aggressive tightening campaign.

The dollar index, which measures the greenback’s value against other major currencies, was down around 0.15% at 101.23 and set for a second straight week of falls.

Growing expectations for a Federal Reserve rate cut later this year has dimmed the outlook for the dollar, while fresh turmoil among U.S. banks has ratcheted up recession risks and added to speculation that the Fed will soon reverse course.

The central bank hiked rates by a quarter point on Wednesday and signaled it may pause an aggressive tightening campaign.

The dollar was a touch lower at 134.19 yen, with the yen headed for a weekly gain of over 1.5%, snapping three straight weeks of losses.

Sterling climbed over a third of a percent to $1.2633, reaching its highest level in almost a year. It was around 0.2% firmer at 87.46 pence per euro.

And the euro was up around 0.2% at $1.1036 but held below recent one-year peaks. It came under selling pressure on Thursday after ECB on Thursday slowed the pace of its interest rate increases with a 25-basis-point rise and noted that past moves were having an impact on the economy.

Although ECB President Christine Lagarde signaled more tightening to come, markets pared back their expectations on how much further rates would rise.

“Lagarde was hawkish in her press conference, but I think financial markets didn’t really buy her view on further rate rises in coming months,” said Carol Kong, a currency strategist at Commonwealth Bank of Australia.

The Aussie and the kiwi were among the largest beneficiaries of the sliding dollar, each rising more than 0.5% and touching multi-week highs, though the kiwi later pared gains.