Deutsche Bank said an AI-driven market adjustment could change the traditional relationship between the U.S. dollar and U.S. equities, arguing that the dollar may no longer automatically function as a safe-haven asset. The bank pointed to a recent period in which technology stocks and the dollar weakened at the same time, a pattern it said suggests the risks facing the dollar are more two-sided than markets had previously priced in. Deutsche Bank also noted that overseas investors now hold more than $20 trillion in U.S. stocks. Of that increase, about 90% came from rising share prices rather than fresh buying. The comments were cited by ChainCatcher in a brief market analysis update.
Deutsche Bank said an AI-driven market adjustment could reshape the traditional relationship between the U.S. dollar and U.S. equities, adding that the dollar should no longer be assumed to be a safe-haven asset by default.
The bank said technology stocks and the dollar have recently weakened in tandem, a sign that risks around the dollar are more two-sided than the market had previously priced.
It also said overseas investors hold more than $20 trillion in U.S. stocks, with about 90% of the asset growth coming from share-price gains rather than new purchases.
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