USD is trading 3.4% down at $89.40, giving back part of Friday’s rebound as investors reassess risks associated with aggressive AI infrastructure spending.
- The decline follows a volatile period for leveraged semiconductor exposure, triggered by last week's steep selloff in AI-related chips.
- Market sentiment is being pressured by a Bank for International Settlements (BIS) report highlighting AI spending risks, prompting a cautious rotation within high-beta tech sectors.
- The downward move occurs despite broader market indices trading higher and an easing of geopolitical tensions between the U.S. and Iran.