The US dollar weakened against most major currencies during trading on Friday (October 30, 2026), as a persistent sell-off in technology stocks on Wall Street pushed the Nasdaq 100 index toward technical correction territory.
The Bloomberg Dollar Spot Index, which tracks the dollar’s performance against a basket of global currencies, fell 0.2% amid growing investor concerns regarding the sustainability of capital expenditure on artificial intelligence (AI). This pressure also caused the yield on 10-year US Treasury bonds to decline by one basis point to 4.92%. These conditions reflect a cooling sentiment toward US technology assets, while simultaneously heightening market caution regarding the outlook for economic growth.
The dollar’s weakness coincided with a surge in global oil prices, driven by escalating geopolitical tensions in the Middle East. Brent crude reached $118 per barrel following indications that the United States might pursue further military action against Iran. Rising energy costs amplify inflation risks and could sustain expectations for the Federal Reserve to maintain high interest rates. However, concerns surrounding AI investment prospects and the decline in tech stocks have weighed on the dollar by driving down Treasury yields. In the foreign exchange market, the euro slipped 0.1% to $1.1168, while the British pound rose 0.4% to $1.3434 before paring its gains.
Meanwhile, the Japanese yen strengthened against the US dollar, with the USD/JPY pair falling 0.2% to 157.38. This movement followed the Bank of Japan’s (BoJ) decision to keep its benchmark interest rate unchanged—in line with market expectations—while signaling that Japan’s underlying inflation has reached its 2% target. This statement has drawn the attention of investors, as it could influence the outlook for Japan’s future monetary policy. Amid mounting pressure on technology stocks, rising oil prices, and shifting global interest rate expectations, the foreign exchange market is expected to remain volatile. Investors are now closely monitoring developments in the Nasdaq, movements in Treasury yields, and the potential for an escalation in the U.S.-Iran conflict to gauge the direction of the dollar in upcoming trading sessions.
Source: Newsmaker.id