Dollar Index loses its CPI gain as AI stocks slide
An artificial intelligence (AI) stock rout has pushed money into Treasuries, and the Dollar Index gave back its gain on Wednesday's Consumer Price Index (CPI) print. It dropped from Wednesday's high just under 103.00, its highest in 18 months, to just under 101.90, its lowest since October 7.
The Dollar Index has lost its recent gain following a decline in AI stocks, as reported on Wednesday's Consumer Price Index (CPI) release. The index, which reached just under 103.00, its highest in 18 months, has now dropped to around 101.90, its lowest since October 7. The rise in US rates due to the AI data centre build and bond yields for debt-heavy builders hitting record highs contributed to the index's drop.
Foreign-owned US stocks make up less than 15% of the index, compared to about 25% in April, resulting in foreigners selling US tech and dollars. The 10-year yield fell to a three-week low, further impacting the index. US producer prices rose 1.3% in September, higher than expected, with energy costs accounting for half of the increase.
Retail sales rose 0.8%, but the control group rose by only 0.1%, with $4.1 billion of the $5.7 billion gain coming from gas stations. Cleveland Fed President Hammack is expected to speak on Thursday about potential rate hikes, with a 90% chance of a hike by mid-December. The US Dollar, a major global currency, is influenced by monetary policy decisions from the Federal Reserve, which focuses on controlling inflation and promoting full employment.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
