Yen gains after BOJ; AI jitters dent dollar
TLT•The yen strengthened after the Bank of Japan held its main rate at 1.25% and signaled it could raise rates every few months. The dollar index fell 0.2% as lower Treasury yields outweighed safe-haven demand amid a selloff in technology shares.
1. BOJ signals potential hikes
The yen strengthened to 157.115 per dollar and was last at 157.2, on track for a third daily gain. The Bank of Japan left its main rate unchanged at 1.25%, revised up its inflation forecast and said policy had entered a more hawkish phase, with room for rate increases once every few months.
2. AI worries weigh on dollar
The dollar index slipped 0.2%, with the decline in Treasury yields outweighing the currency's usual safe-haven appeal. A selloff in technology shares followed renewed concerns about AI spending after results from Alphabet, Amazon and Intel. The euro rose 0.16% to $1.1199, while sterling gained 0.3% to $1.341.
