AI Financing Fears Weigh on Dollar as Euro Rebounds
The dollar was heading for its first weekly decline in more than a month as investors reassessed AI investment risks and US rate expectations.
Key takeaways
- The dollar index was down 0.25% at 101.77 and on track for a 0.45% weekly decline.
- As of 09:24 UTC Friday, EUR/USD traded at 1.1259, up 0.34% since the previous close.
The US dollar was heading for its first weekly decline in more than a month against the euro and yen on Friday, as investors weighed US rate expectations and concerns about artificial-intelligence investment. The dollar index fell 0.25% to 101.77 and was set for a 0.45% weekly drop.
Investors have questioned whether data-centre operators will earn enough to repay debts, sending AI-linked shares lower and spreading stress to parts of the credit market. Analysts said a pullback in AI investment could weigh on US growth and Treasury yields.
US Treasury yields fell earlier in the week despite strong inflation readings, after cautious comments from Federal Reserve officials tempered expectations for an October rate increase. Markets assigned an 87% probability to the Fed leaving rates unchanged later this month, according to the CME FedWatch Tool.
The euro rose 0.14% to $1.1235 in CNA’s Friday report and was on track for a 0.39% weekly gain. As of 09:24 UTC Friday, EUR/USD traded at 1.1259, up 0.34% since the previous close.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
