Following a new round of attacks by President Donald Trump on Federal Reserve Chair Jerome Powell, which raised questions about the central bank’s independence and undermined investor confidence in the US economy, the US dollar fell to a three-year low on Monday.
At its lowest point since March 2022, the dollar index, which compares the US dollar to a basket of major currencies, dropped as low as 97.923. In addition, the dollar fell to a 10-year low vs the Swiss franc and lost strength against some other significant currencies, such as the euro, yen, and pound.
The steep drop came after President Trump called Powell a “major loser” and reaffirmed his call for fast interest rate reduction in a series of social media statements on Monday.
After White House economic advisor Kevin Hassett acknowledged on Friday that the administration was looking into legal options to fire Powell, the President’s criticism heightened rumours about political meddling in monetary policy. Trump asked for the Fed to lower interest rates the day before, openly declaring that Powell’s dismissal “cannot come fast enough.
The dollar fell to 0.8063, its lowest level in a decade, down more than 1.5% versus the Swiss franc. The euro hit its highest level since November 2021, at $1.1535. According to CFTC statistics for the week ending April 15, the dollar dropped to a seven-month low of 140.66 against the Japanese yen, accompanied by record-high net-long holdings on the yen.
The Australian dollar reached its highest level in four months at $0.6430, while sterling surged to $1.34, its best level since September. For the first time in more than five months, the New Zealand dollar returned to the $0.6000 mark.
Also Read:
Trump Orders Target to Abandon its Diversity Initiative
The UAE and the UK Strengthen their Cooperation to Stop illegal Financial Flows
