Dollar Slips as Nasdaq 100 Nears Technical Correction

Deep News10-31

The dollar weakened against most G10 currencies as a sustained selloff in technology stocks pushed the Nasdaq 100 close to a technical correction.

The Bloomberg Dollar Spot Index fell 0.2%. Concerns over artificial intelligence spending resurfaced, dragging US equities sharply lower, while the benchmark 10-year Treasury yield dropped 1 basis point to 4.92%.

Signs that the United States may resume military strikes against Iran briefly lifted Brent crude to $118 a barrel.

The dollar's status as a safe-haven currency may be undermined during an AI-driven market pullback. George Saravelos of Deutsche Bank warned that the risks facing the dollar are "far more two-sided than what market pricing has reflected over the past few weeks."

EUR/USD declined 0.1% to 1.1168. Note: Eurozone third-quarter GDP growth exceeded expectations, even as the French economy unexpectedly contracted.

GBP/USD initially rose 0.4% to 1.3434 before paring its advance. The repair of the UK bond market took another step forward. The first budget unveiled this week by UK Prime Minister Andy Burnham reassured investors, pushing yields to a five-week low.

USD/JPY fell 0.2% to 157.38. The Bank of Japan left its benchmark interest rate unchanged as widely expected, with Governor Kazuo Ueda saying price trends are consistent with the central bank's target.

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