LONDON, July 1 Reuters Gathering gloom about prospects for the global economy lifted the safehaven dollar on Friday and pressured risksensitive currencies, with the Australian dollar tumbling to a twoyear low.

Rampant inflation and a rush by central banks to raise interest rates and stem the flow of cheap money has fuelled selloffs across markets and lifted assets seen as safer bets.

Fresh data on Friday showed euro zone 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 weekly gain, and was last up 0.3 on the day at 105.060.

It39;s a riskoff start to the second half of the year with equities and commodities down, so the dollar is stronger pretty much across the board, said Kenneth Broux, an FX strategist at Societe Generale in London. The Fed is committed to bring inflation under control but can it deliver a soft landing?

The U.S. Federal Reserve has lifted rates by 150 basis points since March, with half of that coming last month in the central bank39;s biggest hike since 1994. The market is betting on another of the same magnitude at the end of this month.

The odds were extremely low that the United States would slide into recession without dragging the rest of the world with it, RBC Capital Markets strategists said in a note.

More risksensitive currencies fell…