Dollar heads for weekly loss as Fed hike bets fade, AI jitters linger
TLT•The dollar was on track for its first weekly loss in more than a month against the euro and yen, as markets scaled back bets on a Federal Reserve rate hike and AI-related equity and credit concerns weighed on the currency. The dollar index fell 0.17% to 101.87 and was set for a 0.35% weekly drop.
1. Dollar loses ground
The dollar fell on Friday and was on track for its first weekly decline in more than a month against the euro and yen. The dollar index fell 0.17% to 101.87, leaving it set for a 0.35% weekly loss.
2. Fed bets and AI concerns
Markets assigned an 83% probability to the Federal Reserve holding rates unchanged later this month, up from 49% a month earlier. Fed officials signaled no urgency to tighten policy, while a sharp drop in AI stocks and concerns about data centre operators’ ability to pay their debts also weighed on the dollar.
3. Major currencies rise
Sterling gained 0.31% to $1.3314 and was up 0.63% for the week. The euro rose 0.08% to $1.1227, while the dollar slipped 0.08% against the yen to 158.11.
