Business · Markets · 1 hr ago
Dollar falls as AI concerns drive investors toward safer assets
The US dollar fell 0.3% on Thursday, its biggest daily drop in more than a month, giving back gains made after recent inflation data.
Concerns about AI investments helped drive investors toward safer assets such as US Treasury bonds, pushing yields lower and weighing on the dollar.
The dollar also fell about 1% against the Swiss franc and declined against nearly all its major peers.
The setback came even as US producer prices rose 1.3% in September, their largest increase in more than four years, and retail sales beat forecasts.
Those figures added to questions about whether the Federal Reserve may raise interest rates, after stronger inflation data had briefly lifted the dollar.
Traders were due to watch Fed Chair Kevin Warsh speak at meetings in Bangkok for clues on policy; the Fed’s blackout period begins Saturday ahead of its October meeting.
The dollar fell 0.3% on Thursday, its biggest drop in more than a month, as concerns about artificial intelligence pushed investors toward safer assets.
A bond rally lowered yields and weighed on the US currency, which fell against nearly all major peers.
The dollar dropped about 1% against the Swiss franc.
The decline came despite US producer prices rising 1.3% in September and retail sales beating forecasts.
- Who
- The US dollar fell against nearly all major peers.
- What
- The Bloomberg Dollar Spot Index declined 0.3%. AI-related concerns prompted a flight to safer assets and a bond rally that pushed yields lower.
- When
- Thursday, October 15, 2026.
- Where
- In currency markets; the article also noted that Fed Chairman Kevin Warsh was due to speak in Bangkok, Thailand.
- Why
- AI-related concerns led investors toward safer assets such as Treasuries, pushing yields lower and pressuring the dollar.
This story does not have two clearly opposing sides.
A better-than-expected US consumer inflation report briefly boosted the dollar to its highest level since May 2025.
The Bloomberg Dollar Spot Index fell 0.3% as AI-related concerns fueled a bond rally and pushed yields lower.
Fed Chairman Kevin Warsh was due to speak at the IMF-World Bank Group annual meetings in Bangkok.
- Dollar index change
- Down 0.3% on Thursday
- Largest daily drop
- Biggest since September 3
- Swiss franc move
- Dollar fell about 1% against the franc
- US producer prices
- Rose 1.3% in September, the largest increase in more than four years
- Retail sales
- Beat forecasts, boosted by gasoline spending
2 sources
What people are saying
As AI debt has sold off, there has been a flight to safer assets like Treasuries, which is pushing down yields, which is pressuring the dollar
Markets are in a bit of a weird place right now
If the market is pricing rising odds of peak AI capex, the USD is a sell