Dollar Weakens as Trump Taps Miran for Fed Board
A dollar gauge trades weaker, stretching losses into a fifth day, after President Donald Trump chose Council of Economic Advisers Chairman Stephen Miran to serve as a Federal Reserve governor.
The Bloomberg Dollar Spot Index fell 0.1% Thursday after earlier gaining as much as 0.2%
It is the longest losing stretch since April for the index
“Given his prior comments, this should be a bearish development for USD,” said Bipan Rai, a managing director at BMO Global Asset Management. “But in practice, a Fed board seat really doesn’t have much of an influence on how markets price things”
Earlier, recurring applications for unemployment benefits surged to the highest since November 2021, adding to recent signs that the labor market is weakening
GBP/USD rose 0.7% to 1.3446
The Monetary Policy Committee split 5-to-4 in favor of reducing rates by a quarter-point to 4% after deadlock forced it into an unprecedented second vote. The prospect of another reduction this year is now shrouded in doubt
“The immediate aftermath of this meeting has seen a repricing of interest rate expectations for the UK,” said Kathleen Brooks, the director of research at XTB. “There is now less conviction that a second rate cut will come later this year”
EUR/USD was little changed at 1.1657
USD/JPY fell 0.2% to 147.06
Source : Bloomberg
