According to KITU Macro, if the sell-off in technology stocks intensifies, the US dollar may face greater pressure. This is in contrast to the performance of the US dollar during previous market crashes. “The stock market beneficiaries of the AI wave are highly concentrated in the US, even compared to the US-led 'internet bubble' back then,” wrote Thomas Mathews, the company's Asia Pacific marketing director. Foreign investment in the US stock market is close to an all-time high, which is beneficial to the US dollar during the overall upward trend, but if the market's perception of AI deteriorates, this will pose a major risk to the US dollar. At the same time, changes in macroeconomic factors have also weakened the dollar's safe-haven asset position to a certain extent. These factors include worsening US fiscal conditions, changes in relative yields, and the possible reaction of central banks to the bursting of the AI bubble. All of these factors suggest that the dollar's “turning point” may be similar to that of the US stock market. “Even if the stock market and the dollar eventually rebound, we suspect they will face a sharper decline in the near future.”

According to KITU Macro, if the sell-off in technology stocks intensifies, the US dollar may face greater pressure. This is in contrast to the performance of the US dollar during previous market crashes. “The stock market beneficiaries of the AI wave are highly concentrated in the US, even compared to the US-led 'internet bubble' back then,” wrote Thomas Mathews, the company's Asia Pacific marketing director. Foreign investment in the US stock market is close to an all-time high, which is beneficial to the US dollar during the overall upward trend, but if the market's perception of AI deteriorates, this will pose a major risk to the US dollar. At the same time, changes in macroeconomic factors have also weakened the dollar's safe-haven asset position to a certain extent. These factors include worsening US fiscal conditions, changes in relative yields, and the possible reaction of central banks to the bursting of the AI bubble. All of these factors suggest that the dollar's “turning point” may be similar to that of the US stock market. “Even if the stock market and the dollar eventually rebound, we suspect they will face a sharper decline in the near future.”