Apollo: US dollar faces significant downside risks in AI correction

Thorsten Slok, chief economist at Apollo Global Management, said that if the selling of AI concept stocks intensifies further, the dollar's recent rally may be at risk. He pointed out that international investors have actively deployed AI themes, driving record rolling net foreign investment inflows in the U.S. stock market in the past 12 months, but most of these investors have not hedged foreign exchange risks. If AI performance is disappointing, causing capital inflows to fall back, it will pose a significant downside risk to the US dollar.