Dollar gains as AI stock selloff spreads to Asian and European markets

The US dollar rose against major currencies on Friday as a global selloff in AI stocks drove investors toward safe-haven assets, with markets awaiting a US payrolls report. Asian tech markets fell heavily and European selling broadened. US stocks declined Thursday by the most since April 2025 on expectations that Democratic midterm gains would increase AI industry scrutiny. Unlike October's tech selloff, the dollar strengthened as investors rotated into US Treasuries and cash, with the 2-year yield hitting its lowest since September 10. The Australian and New Zealand dollars fell most among developed currencies, dropping 0.76 percent and 0.8 percent respectively. Fed funds futures reduced December rate hike odds to about 65 percent from over 80 percent on Wednesday, with weekly jobless claims matching a 57-year low.