Dollar Falls on AI Concerns, Cautious Fed Comments

Dow Jones10-16 14:28

0628 GMT - The dollar falls along with Treasury yields as concerns about the sustainability of debt-funded AI investments weigh. "Over the next three years, the U.S. is expected to spend 2.5%-3% of GDP on capital expenditure and AI infrastructure, which is larger than any infrastructure build out in the U.S. history," Jefferies economist Mohit Kumar says in a note. If the pace of AI build out slows, it would have important consequences for AI companies and the economy, he says. The dollar is also hit by recent comments from Federal Reserve officials, including John Williams and Michelle Bowman, sounding cautious over further interest-rate rises. The DXY dollar index falls 0.1% to 101.944 after hitting a 10-day low of 101.816 overnight.

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