10:17 AM EDT, 03/22/2024 (MT Newswires) -- The US dollar was broadly higher for a second day as a sharp decline in the Chinese yuan and widespread weakness across other Asia-Pacific currencies featured in global foreign exchange trading Friday.

The People's Bank of China set a lower-than-expected daily fixing for the yuan, often a sign that officials are managing the currency to improve the country's terms of foreign trade as it struggles against a downturn in its economy. China has lowered interest rates and announced a series of stimulus measures this year to help stabilize its ailing property sector.

Elsewhere in the region, the Japanese yen sunk to fresh year-to-date lows despite the country's first interest rate increase this week since 2007, and the New Zealand dollar extended its decline as the country officially fell into recession. On Thursday, New Zealand reported a 0.1% drop in Q4 gross domestic product, following a 0.3% contraction in Q3.

The dollar held its gains in a quiet North American session even though US Treasury rates continued to fall following Fed Chair Powell's pledge Wednesday to ease monetary policy later this year.