Dollar heads for weekly loss as Fed hike bets fade, AI jitters linger

The dollar is heading toward a weekly loss as market expectations for a Federal Reserve rate hike weaken. At the same time, lingering jitters tied to artificial intelligence are adding to the market backdrop.

Rate-hike bets lose momentum

Expectations for a Fed rate increase have faded, removing a source of support for the dollar. The shift is shaping the currency's direction as the week draws to a close.

AI concerns remain in focus

AI-related jitters continue to weigh on market sentiment. The combination of softer Fed hike expectations and ongoing AI concerns leaves the dollar on course for a weekly decline.

Market outlook

For now, the dollar's weekly performance remains tied to two developments identified in the market: changing expectations for Federal Reserve policy and persistent unease surrounding artificial intelligence.