The US dollar fell to its lowest level in three years on Monday as investor confidence in the US economy took another hit over President Donald Trump’s attacks on Federal Reserve Chairman Jerome Powell. The dollar slid against a basket of currencies, reaching 97.923, and broke above $1.15 for the euro.
Trump’s criticism of Powell has raised concerns about the central bank’s independence, potentially putting it under threat. However, experts say that despite this, the president cannot directly fire Powell, as he requires certain procedures to be followed.
The attacks have had a ripple effect on global markets, with the Swiss franc hitting a decade-high and the Australian dollar scaling a four-month high. The euro, sterling, and New Zealand dollar also saw significant gains.
Markets are also witnessing increased uncertainty over Trump’s trade policies, which have sent global markets into a tailspin. This has weakened the US economy and contributed to the decline in the dollar.
The onshore yuan rose to a two-week high before paring some of its gains, while China kept its benchmark lending rates steady for the sixth successive month. However, markets are betting on more stimulus being rolled out soon due to the escalating trade war between the US and China.
Source: https://www.reuters.com/world/middle-east/dollar-weakens-concerns-about-feds-independence-under-trump-2025-04-21