The dollar has slid to a one-month low now that the US has technically entered recession

The dollar fell to a one-month low against a basket of major currencies after data showed the US economy has entered a technical recession.

The dollar index, which measures the greenback's performance against six other currencies, fell to its lowest level in nearly a month.

The safe-haven currency has experienced sharp sell-offs in recent weeks, only rising on two days since mid-July as a "sell-the-fact" reaction hits markets over expectations that the Fed will become less aggressive in its monetary policy.

Even if there are more rate hikes, they're unlikely to be at the same 75-bps pace we've seen over the past two meetings, which is bad news for the economy.

The Fed raised the benchmark interest rate by 0.75 percentage points last week, extending a streak of larger-than- usual hikes, as it battles to cool raging inflation.

According to industry experts, the risk of the US economy going into a recession is very high.

The bond market's three-month bill premium shows the difference between the yield on three-month Treasury bills now and 18 months in the future. It fell by the most on record in the month of July.

The dollar has fallen due to weakness in China. There could be a fall in global energy demand and global trade if there is a decrease in demand from China.

Safe havens are once again turning out to be of little assistance. The analysts at Commerzbank said that high energy prices and high US terms of trade are bad for the US dollar.