CNBC Arabia— The US dollar declined during Tuesday's trading session amid persistent uncertainty surrounding artificial intelligence-related business activities, while the euro rose slightly despite ongoing investor concerns over widespread unrest in France.
Shares of South Korea's Elice Group Elice Group, specialized in artificial intelligence services, dropped by 32% on its first day of trading on the Seoul Stock Exchange, signaling continued weak sentiment toward the artificial intelligence sector in global markets.
Additionally, the dollar received support from strong capital inflows into the US stock market, and higher interest rates—driven partly by growth and inflation expectations linked to the artificial intelligence sector—helped bolster the American currency, according to Reuters.
Dominic Bunning, head of G10 FX strategy at Nomura, stated that the dollar was supported by significant inflows into the equity market.
Currency Movements
The US dollar index, which measures the performance of the American currency against a basket of major currencies, fell by 0.27% to 101.69 points.
The euro rose by 0.2% to $1.1232, though investors remain cautious regarding the European currency amid ongoing widespread protests and the deteriorating financial situation in France.
The French government announced that imposing a nighttime curfew in areas that witnessed violence within major cities helped relatively calm the situation during the worst unrest the country has seen in years, while further protests are scheduled for early next week.
The British pound climbed by 0.66% to $1.339, after labor market data showed resilience in jobs, in the latest series of British data to deliver positive surprises.
The Japanese yen rose by 0.29% against the dollar, reaching 158.04 yen per dollar.
Canadian Dollar Benefits from Alberta Referendum
The Canadian dollar appreciated by 0.42% to 1.4050 CAD per US dollar, recording its strongest level in nearly a month.
The Canadian currency's gains came after residents of the province of Alberta voted overwhelmingly in favor of remaining within Canada, in the province's first-ever secession referendum.
