The dollar was set for its first weekly fall in more than a month against the euro and yen as investors weighed the AI-driven selloff and the US rate outlook. The dollar index was down 0.25% at 101.77 and on track for a 0.45% weekly decline.
The dollar was set for its first weekly fall in more than a month against the euro and yen as investors focused on the US rate outlook and concerns about an escalation of the Iran conflict faded. The dollar index fell 0.25% to 101.77 and was set for a 0.45% weekly decline.
AI stocks fell sharply this week, with stress spreading to parts of the credit market as investors questioned whether data centre operators could become profitable in time to repay debt. Analysts said Wednesday’s moves may offer a preview of currency reactions to a major AI-driven selloff: the dollar fell as investors shifted toward a more dovish view of Federal Reserve policy. US Treasury yields dropped earlier in the week despite hot inflation readings, as cautious remarks from Fed officials tempered expectations for an October rate hike. Markets assigned an 87% probability to rates remaining unchanged later this month.
The Swiss franc was set for a 0.61% weekly rise against the dollar. The euro was up 0.14% at $1.1235 and on track for a 0.39% weekly gain, while the yen was set for a 0.28% weekly rise and last stood 0.05% higher at 157.89. The Australian dollar rose 0.55% to $0.6959 but was heading for a 0.3% weekly decline after a soft jobs report reduced expectations for another interest-rate increase.
