The current artificial intelligence (AI)-driven market correction could impact the dollar’s status as a haven asset, Deutsche Bank’s global head of FX strategy, George Saravelos, said in a Friday (Oct. 30) note to clients, Bloomberg reported.

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This view is supported by recent times when both tech stocks and the dollar were weak; the greater-than-ever scale of foreign exposure to U.S. stocks; and a trend in which U.S.-driven equity shocks lead to the dollar falling together with stocks and increasing foreign investors’ equity losses, Saravelos said, according to the report.

Because both U.S. real yields and equities have become tied to AI-related capital spending, Saravelos said, per the report, “The AI dollar is here.”

Bloomberg reported Friday morning that the Nasdaq fell 3% after having already lost more than $1.2 trillion in market capitalization since the beginning of October.

The decline has been driven by traders’ concerns about whether companies’ AI investments will pay off, according to the report.

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On Friday morning, Intel’s stock dropped 28% after its outlook missed estimates, and Amazon’s shares declined as the company reported higher capital spending, per the report.

CNBC reported Friday morning that while the Nasdaq Composite fell, the Dow Jones Industrial Average outperformed as traders shifted away from AI stocks.

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