Dollar Flat as Yen Strengthens; Oil, AI Doubts and French Turmoil Drive Safe-Haven Demand

The dollar was roughly flat on Thursday while the yen headed for its largest single-day gain in nearly a month, as fragile equities, extended Middle East conflict pushing crude higher, and mounting doubts over AI investment returns drove investors toward safe havens. The dollar index fell 0.08% to 101.60. The euro slipped 0.09% to $1.1222 as concerns over French social unrest and the country's deteriorating fiscal outlook outweighed AI-trade worries that weighed on U.S. stocks. The yen rose 0.75% to 156.96 per dollar, partly on "intervention premium" expectations as the currency approaches the 160 level. The dollar fell 0.42% against the Swiss franc to 0.821. Oil climbed about 3% to a five-month high after Houthi attacks on Saudi Arabia raised supply concerns. The French-German 10-year yield spread widened to 177.7 basis points, the largest since 2011. Sterling rose 0.05% to $1.3401 and the Australian dollar fell 0.11% to 0.7019.