Apollo: The US dollar faces significant downside risks in the AI pullback

According to Jinshi, Torsten Slok, Chief Economist at Apollo Global Management, stated that if the sell-off of AI concept stocks intensifies, the recent rise of the dollar may face risks. He pointed out that international investors are actively positioning themselves in the AI theme, driving a record rolling net inflow of foreign capital into the U.S. stock market over the past 12 months, but most of these investors have not hedged against foreign exchange risks.

If AI performance disappoints and leads to a decline in capital inflows, it will pose significant downside risks to the dollar.