Dollar climbs on haven bid as AI rout grips Asian markets
TLT•The dollar rose 0.25% to 101.76 on safe-haven demand after a global AI-stock selloff, while falling Treasury yields limited gains. Investors awaited US payrolls data for clues on the Federal Reserve’s rate path.
1. Dollar supported by haven demand
The US dollar held firm against major currencies on Friday after an AI-stock selloff hit Asian markets. The dollar index rose 0.25% to 101.76, while the euro fell 0.2% to $1.1198 and sterling lost 0.2% to $1.3433.
2. Yields and currencies
Overnight, the two-year Treasury yield fell about 10 basis points to its lowest since September 10, and the 10-year yield dropped nearly 6 basis points. The yen reached a one-week high of 157.27 per dollar before paring gains to 157.805 in the Asian afternoon.
3. Payrolls in focus
Investors were watching Friday’s US non-farm payrolls report for clues on the Federal Reserve’s rate path. Weekly initial jobless claims fell by 6,000 to 189,000, below the 196,000 estimate, while futures put the probability of a 25-basis-point December rate hike at around 70%, down from more than 80% on Wednesday.
