Business · Markets · 4 hrs ago
Dollar heads for weekly loss as AI financing worries unsettle markets
Global stocks fell modestly on Friday as markets steadied after a sharp selloff in technology shares.
The decline followed concerns about the debt used to fund AI infrastructure, including data centres and computing capacity.
Investors worry some companies may not earn enough, soon enough, to meet their financial obligations.
Those concerns increased demand for government bonds, pushing US Treasury yields lower and reducing support for the dollar.
The dollar was heading for its first weekly loss in five weeks, while the euro recovered from a 17-month low.
The uncertainty matters because investors are reassessing whether AI-related spending can sustain company growth and market gains.
Investors will watch the US Federal Reserve's meeting later in October for signals on interest rates, while future dollar moves will also depend on economic data and developments in AI markets.
The US dollar was heading for its first weekly loss in more than a month on Friday.
Lower US Treasury yields and reduced expectations of a Federal Reserve rate hike weighed on the currency.
Concerns about the financing and prospects of AI-related companies also unsettled markets.
The dollar index was down, though reports gave different figures: Reuters reported a 0.21% fall, while Okaz reported a 0.42% fall.
The euro rose against the dollar, while the yen’s movement differed between the reports.
- Who
- The US dollar and global currency and financial markets.
- What
- The dollar was heading for its first weekly loss in more than a month.
- When
- Friday, October 16, 2026.
- Where
- Global markets; the reports highlighted US Treasury yields and currency trading.
- Why
- Lower Treasury yields, reduced expectations of a Federal Reserve rate hike, and concerns about AI-related companies weighed on the dollar.
This story does not have two clearly opposing sides.
Stronger-than-expected US inflation data led traders to increase bets on further interest rate hikes.
Investors sought safe havens amid concerns about AI-related companies, and technology stocks sold off.
The dollar fell and was heading for its first weekly loss in more than a month.
- Dollar index change
- Reuters reported a 0.21% fall; Okaz reported a 0.42% fall.
- Weekly dollar outlook
- First weekly loss after more than a month, according to Okaz.
- Okaz dollar index level
- 101.61 points.
- US Federal Reserve meeting
- Scheduled for late October.
- Euro exchange rate
- Reuters reported $1.12315; Okaz reported $1.1255.
3 sources
What people are saying
We're starting to see some cracks in the financing of data centers because you're not too sure who's going to be the winners.
Our view is that there's going to be some really significant winners. But you have to be careful on the financing capability because companies don't get into trouble because their assets don't exceed their liabilities. They get into trouble when they have liquidity issues.