US Dollar continues bleeding as Trump fights the Fed
The US Dollar Index (DXY) trades deep in the red on Monday, sliding toward the 98.50 region and marking a new three-year low.
The sharp drop follows escalating market concerns over the Federal Reserve’s (Fed) institutional integrity after US President Donald Trump again publicly criticized Fed Chair Jerome Powell and confirmed he is exploring ways to remove him. Trump accused Powell of manipulating interest rates for political purposes in 2024 and described him as “too late” in reacting to economic conditions.
Amid rising global uncertainty and deteriorating confidence in US monetary leadership, Gold surged to a new all-time high near $3,425 per ounce, benefiting from safe-haven demand and a collapsing Greenback.
The broader sentiment remains risk-averse with traders reassessing the Dollar’s long-term reserve status amid unpredictable trade and fiscal policies.
Source: FXstreet