Euro Gets Much-Needed Reprieve as AI Wobbles Rock the Dollar
AI stock losses and lower U.S. yields pushed the dollar down 0.14% for the week, while traders raised the odds of the Federal Reserve holding rates.
- On Friday, the dollar headed for its first weekly fall in five weeks, lifting the euro from a 17-month low as wobbles in AI investment and falling US yields curbed recent gains.
- AI stocks cratered this week as investors grew concerned that data center operators might struggle to reach profitability in time to service their debts, sparking a flight to Treasuries.
- Currency markets saw the dollar shed about 0.1% to $1.1210 per euro and fall 0.2% to 158.13 yen, while sterling remained steady at $1.3270 aided by Britain's unexpected 0.1% economic growth in August.
- Federal Reserve Chair Kevin Warsh speaks in Bangkok on Friday at the International Monetary Fund's annual meeting, offering a final chance to shape expectations for the Fed's decision later this month.
- Traders are pricing in a 72% chance of the Fed standing pat later this month, up from 53% a month earlier, as officials weigh the need for more clarity before finalizing policy.
23 Articles
23 Articles
Channel News Asia
PressNewsAgencyDollar heads for weekly fall as investors gauge AI selloff impact
Oct 16 : The US dollar was set for its first weekly fall in more than a month against the euro and the yen, as investors turned their focus to the US rate outlook while concerns about an escalation of the Iran conflict faded.AI stocks have cratered this week and the stress has spread to parts of the credit ma
Euro gets much-needed reprieve as AI wobbles rock the dollar - Regional Media News
SINGAPORE, Oct 16 (Reuters) - The dollar skidded on Friday toward its first weekly fall in five, lifting the euro from a 17-month low as wobbles in AI investment and a drop in US yields put the brakes on recent gains. AI stocks have cratered [...]
The Economic Times
Euro gets much-needed reprieve as AI wobbles rock the dollar
The dollar is about to experience its first weekly decline in five weeks amid AI investment concerns. The euro has rebounded from a 17-month low as US yields fall. Investors are worried about the profitability of data centre operators amidst AI stock volatility. Federal Reserve Chair Kevin Warsh's speech may influence market expectations for upcoming rate decisions.
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