Dollar Could Weaken Slightly in Near Term on AI Fears -- Market Talk

1048 ET - The dollar, an effective measure for AI market sentiment, could see further mild downside in the near-term if AI concerns persist, says Matthew Ryan, head of market strategy at Ebury. However, Ryan expects bouts of AI-related anxiety to prove temporary, with the broader investment case remaining intact. Still, markets remain sensitive to negative news, he says. "The dollar fell sharply on Tuesday afternoon before recovering most of its losses, a sign that any positive Iran war news, even unfounded, still weighs heavily on the greenback." The U.S. dollar index edges up to 101.737, according to LSEG. (jessica.coacci@wsj.com)

(END) Dow Jones Newswires

October 21, 2026 10:48 ET (14:48 GMT)