The botin of the US dollar on Monday as the confidence of investors in the American economy tok another blow after the growing attacks of President Donald Trump against the Federal Reserve, which increases fears on the independence of the Central Bank.
The Economic Advisor of the White House, Kevin Hassett, confirmed Friday that the administration was actively studying if he could say goodbye to the president of the Federal Reserve, Jerome Powell. This followed Trump’s statement one day before Powell’s termination “cannot come quick enough”, along with the renewed demands of an aggressive cut in interest rates.
The growing uncertainty weighed a lot in the green back. The dollar fell under a decade against the Swiss Franco and reached a minimum of seven months against the Japanese Yen, while the euro rose to its strongest level in three years. Commercial volumes were thinner than usual, with markets in Australia and Hong Kong closed for Easter Monday.
“Powell does not directly inform Trump, so the president cannot simply say goodbye. The elimination would require procedures that have a high legal barrier,” said Vishnu Varrathan, head of Macro Research from Asia Ex-Japan in Mizuho. “But without a formal dismissal, undermining the perceived independence of the Fed could have consequences of great rota.”
The euro reached a peak of $ 1,1533, while the dollar fell to 0.8070 Swiss francs, marking its lowest level in a decade. Against Yen, the dollar was exhausted at 1.1% to 140.63 yen. The data of the Basic Products Trade Commission (CFTC) revealed that the long net positions in the Japanese Yen reached a record in the week that ended on April 15.
The British pound also gained ground, rising more than 0.5% to $ 1,3380, the highest since October 1. Meanwhile, the Australian dollar reached a maximum of two months of $ 0.6402.
“It’s really a buffet for any dollar bear,” Varathan said. “Of persecuted uncertainty, tariff policies until the depth of faith faith after Powell’s controversy, the environment is extremely negative for the dollar.”
Trump’s radical tariffs and erratic commercial policies have already shaken global markets and clouded the economic prospects of the United States. This has promoted an exodus of US assets. UU., Massing even more the dollar.
Against an important basket, the dollar fell to a minimum of three years of 98,267. The New Zealand dollar also increased by more than 0.7% to a maximum of five months of $ 0.5981.
In China, Yuan on land was appreciated in approximately 0.2% to 7,2875 per dollar, with the Yuan on the high seas in 7,2897. The Central Bank of China maintained its stable reference loan rates during the sixth consecutive month, in line with expectations, but markets anticipate additional stimulus measures such as Chinese-intense commercial tensions.
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