Dollar heads for weekly fall as AI stock selloff shifts Fed rate bets

The US dollar is heading for its first weekly decline in over a month against the euro and yen, as investors shift focus to Federal Reserve rate policy amid a sharp selloff in AI stocks. The dollar index fell 0.25% to 101.77, set for a 0.45% weekly drop. The AI stock slump has spread to credit markets, with analysts noting Wednesday's moves showed the dollar falling rather than attracting safe-haven demand, as investors adopt a more dovish view on Fed policy. Markets assign an 87% probability of rates staying unchanged this month. The Swiss franc is set for a 0.61% weekly gain as a safe-haven beneficiary, while the euro rose 0.14% to $1.1235. The yen is on track for a 0.28% weekly rise, supported by Bank of Japan Governor Kazuo Ueda's Friday remarks on continued rate hikes.