Euro gets much-needed reprieve as AI wobbles rock the dollar
SPY•The dollar was set for its first weekly fall in five weeks as concerns about AI investment and falling U.S. yields lifted the euro from a 17-month low. The euro traded at $1.1226, while the dollar index stood at 101.89, down 0.2% for the week.
1. Dollar retreats
The dollar weakened in Asian trading on Friday as concerns about AI investment and a drop in U.S. yields curbed its recent gains. The euro traded at $1.1226, after falling more than 3% against the dollar over the previous five weeks.
2. AI and Treasury yields
Investors have questioned whether data centre operators will become profitable in time to pay their debts, after AI stocks fell and stress spread to parts of the credit market. The U.S. 10-year Treasury yield was set for its largest weekly fall in more than a year, while the dollar index was at 101.89 and set for a 0.2% weekly decline.
3. Other currencies and Fed
Sterling was up 0.5% for the week at $1.3303 after data showed Britain’s economy grew 0.1% in August. Traders priced in a 72% chance that the Federal Reserve would hold rates later in the month, up from 53% a month earlier.
