Deutsche Bank told clients on Friday that the dollar's role as a safe haven should not be taken for granted in an AI-driven market correction, after tech stocks and the dollar sold off together. George Saravelos, the bank's global head of FX research, said the U.S. relies on foreign equity inflows to an unprecedented degree, and these inflows currently finance the entire U.S. current account deficit. He estimated that roughly 90% of the more than $20 trillion in U.S. equities held by foreigners reflects price gains rather than additional buying. He warned that if an equity shock is U.S.-centric, the dollar-equity correlation could turn positive, making the dollar add to equity losses and prompting hedging shifts. He said risks to the dollar are now far more two-sided than the market has priced in over the past few weeks.
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Related tickers and likely impact
DXY
▲ Likely positiveRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/29/2026 | 101.88 |
| Change that session | -0.26% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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