Dollar climbs on safe-haven demand as AI rout saps Asian markets
TLT•The dollar rose against most major currencies on Friday as an AI stock selloff spread globally, while investors awaited US payrolls data for clues on the Federal Reserve’s rate path. The euro fell 0.4% to $1.1171, and the dollar gained 0.4% against the yen to 158.2.
1. Dollar gains as stocks fall
The dollar gained against most major currencies on Friday as the global equity selloff prompted safe-haven demand. Asian tech-heavy markets fell sharply, and selling broadened in Europe after US stocks recorded their steepest decline since April 2025 the previous day.
2. Yields and currencies move
The euro fell 0.4% to $1.1171 and sterling lost nearly 0.5% to $1.338. The dollar rose 0.4% against the yen to 158.2 and 0.2% against the Swiss franc to 0.8179. The two-year US Treasury yield dropped about 10 basis points overnight to its lowest since September 10, while the 10-year yield fell nearly 6 basis points.
3. Payrolls in focus
Investors awaited Friday’s US non-farm payrolls report for clues on the Federal Reserve’s interest-rate path. Weekly initial jobless claims fell by 6,000 to a seasonally adjusted 189,000, below economists’ 196,000 estimate. Futures markets put the probability of a 25-basis-point December rate hike at around 65%, down from more than 80% on Wednesday.
