The dollar quoted near its lowest levels in three years on Tuesday, when the implacable attacks of President Donald Trump against the president of the Federal Reserve, Jerome Powell, deepened the investor on the US economy.
The green back remained near a decade against the Swiss Franc and a 3-1/2-year channel in front of the euro, in the middle of the growing fears about the independence of US monetary policy.
In a strong climb, Trump published in Truth Social Monday, labeling Powell as a “great loser” and urging an immediate cut in interest rates to avoid economic slowdown. On Friday, the Economic Advisor of the White House, Kevin Hassett, confirmed that the administration continued to explore legal ways to eliminate Powell, a day after Trump declared that Powell’s termination “cannot be quick enough.”
Powell recently emphasized the need for patience of Fed, stating that interest rates must remain stable until it is clarified that the tariff policies of the United States do not trigger sustained inflation. However, Trump’s public criticisms have caused speculation about Powell’s job security, increasing the risk of significant market agitation.
“There is this terrible stagnation between Trump and Powell,” said Eric Kuby, North Star Investment Management investment director. “The concern is the assembly that any movement to replace Powell would generate real panic in the dollar.”
Anxiety for investors became further aggravated by commercial tensions. On Monday, China accused Washington or abused the rates and warned other countries that do not expand the largest economic groups with the United States, increasing the fears of a long commercial war.
In the front of the currency, the dollar remained stable at 0.8095 Swiss Franc, near the decade on Monday or 0.8042. It was also around 140.99 yen, about a minimum of seven months, while the signing of the euro hero at $ 1,1502 after reaching $ 1,1573, is the highest level since November 2021.
Sterling changed little to $ 1,3376, maintaining its rally after touching a peak of $ 1,3421 on Monday, the highest since September.
“The longer the speculation about the independence of US monetary policy continues, the more time the USD is at risk of falling,” said Joseph Capurso, head of the international and sustainable economy of the Commonwealth Bank of Australia. “It may require another strong sale in the US or capital markets. UU. To dissuade President Trump to promote the credibility of the Fed.”
The US dollar index, which measures the green back against six main currencies, stood at 98,454, after immersing 97,923 in the previous session, an invisible level since March 2022. Meanwhile, the rise of Australian dollar sensitive to the risk of uploading on Monday and was negotiated at $ 0.6414 in the last session.
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