Dollar Hits 2-Week Low on AI Concerns, Reduced Prospect of Imminent U.S. Rate-Rise -- Market Talk

0901 GMT - The dollar extends its losses to reach a two-week low against a basket of currencies. Traders have reduced the odds of the Federal Reserve raising interest rates on October 28 after some policymakers signalled a need to wait for more clarity, Exness strategist Christopher Tahir says in a note. Doubts over the sustainability of debt-funded AI investments have also increased demand for government bonds, weighing on the dollar, he says. Treasury yields remain not far from multiweek lows hit on Thursday. The DXY dollar index falls as low as 101.729. The euro rises to a one-week high of $1.1249 and sterling hits a three-week high of $1.3324, according to LSEG. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

October 16, 2026 05:01 ET (09:01 GMT)