AI Concerns Leave Dollar Vulnerable to Oil Price Falls

Dow Jones10-21 18:16

1016 GMT - Lingering concerns over debt-funded AI investments have seemingly left the dollar more vulnerable to any falls in oil prices, ING's Francesco Pesole says in a note. Rising concerns about tech stocks have challenged U.S. interest-rate rise bets, providing more flexibility for rate expectations to adjust lower in the case of lower oil prices, he says. The balance of risks have shifted towards a softer dollar, he says. "Even so, we continue to favor a gradual and orderly dollar decline rather than a sharper depreciation." The continued prospect of Federal Reserve tightening and elevated oil prices remain supportive, he says. The DXY dollar index rises 0.1% to 101.791 after hitting a near three-week low of 101.506 Tuesday when oil prices slipped.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment