Dollar dips on AI worries, euro edges up despite French unrest
SPY•The dollar index fell 0.27% to 101.69 as doubts about the AI trade resurfaced, while the euro rose 0.2% to $1.1232. Sterling, the yen and the Canadian dollar also gained after UK jobs data, strong demand at a Japanese bond auction and Alberta’s vote to remain in Canada, respectively.
1. Dollar slips on AI doubts
The US dollar slipped as concerns about the strength of the AI trade resurfaced. The dollar index fell 0.27% to 101.69. A 32% plunge in South Korean AI services firm Elice Group shares in their Seoul debut was cited as a sign that negative sentiment toward the sector was persisting. An analyst said skepticism was growing over whether AI companies could generate enough profits to justify issuance costs, particularly with higher rates.
2. European currencies rise
The euro edged up 0.2% to $1.1232 despite concerns about protests and France’s fiscal outlook. The pound rose 0.66% to $1.339 after UK jobs data showed a resilient labour market; markets were almost fully pricing in a 25-basis-point Bank of England rate hike at its next meeting on November 5.
3. Yen and Canadian dollar gain
The yen gained 0.29% to 158.04 per dollar after a Japanese government bond auction drew record demand for 20-year bonds. The Canadian dollar rose 0.42% to 1.405 per US dollar, its strongest level in almost a month, after Alberta residents voted by a large majority to remain part of Canada.
