During today's Asian trading, the US dollar declined significantly against major currencies, driven by growing investor concerns over President Trump's escalating trade policies and his direct attacks on the Federal Reserve.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) fell by 1.04% to 98.35 (the lowest value since March 31, 2022). Since the beginning of April, the index has fallen by 5.62%. Trump's public criticism of Fed Chair Jerome Powell - and his team's ongoing efforts to explore removing him - has sparked fears about the central bank's independence. Analysts warn that even the perception of political interference could undermine confidence in U.S. monetary policy and destabilize global markets. The move has intensified dollar selling, with investors pulling out of U.S. assets amid fears of long-term economic instability.
Emerging market currencies gained ground, and the yen, sterling, and Australian dollar all surged to multi-month highs. Meanwhile, the New Zealand dollar climbed past the $0.60 mark for the first time in over five months.
Geopolitical risks - including Russia-Ukraine tensions, the deepening U.S.-China trade conflict, and Trump's shifting tariff landscape - continue to fuel market volatility. Despite ongoing negotiations, China has cautioned against deals that compromise its interests, while the U.S. remains firm in its tariff stance.
As pressure mounts, analysts say any sign of reduced Fed autonomy or further trade shocks could accelerate the dollar’s decline and shift global capital into safer assets like gold and the swiss franc.