The Japanese yen gave up some of the safe-haven-driven gains on Tuesday as investors grappled with the potential implications of a Chinese startup’s free open-source artificial intelligence (AI) model, while fresh tariff threats had the euro on the back foot.
The US dollar steadied after it took a hit overnight amid a broad shakeout in financial markets on the emergence of China’s DeepSeek free AI assistant that it says uses lower-cost chips and less data.
The dollar index, which measures the US currency against six rivals the yen and the euro, rose 0.13% to 107.94.
The dollar was up 0.7% against the yen at 155.70, the euro fetched $1.0428, down 0.6%, and sterling last traded at $1.2441, down 0.4% on the day.
The risk-sensitive Australian and New Zealand dollars continued to lose ground, with the Australian dollar falling by about 0.62% to 0.6254 per dollar.
The New Zealand dollar also fell by about 0.58% to 0.5659 per dollar.
