Dollar Resilient Amid AI Spending Concerns; Yen Gains Ahead of Japanese Election

The U.S. dollar held steady at a two-week high, marking its best performance since November. Concerns over AI spending have hit stocks, boosting risk aversion and supporting the dollar. The yen strengthened before Japan's election, with potential fiscal policy implications if Prime Minister Sanae Takaichi wins.

The U.S. dollar remained steady near a two-week high on Friday, signaling its strongest weekly performance since November. This resilience followed investor unease regarding rampant AI spending, which sent stocks into a tailspin.

The dollar's strength was further bolstered by President Donald Trump's nomination of Kevin Warsh for Federal Reserve Chair. Warsh's anticipated resistance to aggressive rate cuts eased fears over central bank independence during a volatile economic period.

The yen gained ahead of Japan's national election, as uncertainties around fiscal policies and Prime Minister Sanae Takaichi's potential victory weighed on global markets.

(With inputs from agencies.)