Dollar falls with Treasury yields as AI investment concerns linger

The dollar index DXY fell 0.2% to 101.762, and the 10-year Treasury yield dropped 2.1 basis points to 5.115%, as persistent worries about debt-funded AI investments dampened expectations for a Fed rate hike on October 28. Markets now price only a 17% chance of a 25bp increase, according to LSEG data. Deutsche Bank analysts note that while US tech stocks recovered overnight, Asian tech stocks fell, indicating continued volatility.