The dollar gained ground on Friday as investors, rattled by concerns over global economic growth and persistent inflationary pressures, sought refuge in the perceived safety of the U.S. currency.

Heightened uncertainty surrounding the Eurozone’s sovereign debt situation further bolstered the dollar’s appeal. Market participants are closely monitoring developments in Europe, with any signs of renewed instability prompting a flight to safety.

The dollar index, which measures the greenback against a basket of major currencies, rose 0.3% to 73.056.

Analysts noted that while the U.S. economy faces its own challenges, the dollar continues to benefit from its status as the world’s reserve currency during times of global economic stress.

“The dollar is acting as a safe haven,” said John Smith, a currency strategist at a major investment bank. “Investors are nervous about the outlook for global growth, and they are looking for a place to park their money.”

The euro weakened against the dollar, falling to $1.32. Concerns about the debt burdens of several Eurozone countries, including Greece, Portugal, and Ireland, continue to weigh on the single currency.

The Japanese yen also weakened against the dollar, trading at 81.00 per dollar. The Bank of Japan’s ultra-loose monetary policy is seen as a factor contributing to the yen’s weakness.

Looking ahead, market participants will be closely watching economic data releases and policy announcements from central banks for clues about the future direction of currency markets.