US Dollar Falls to Three-Year Low Amid Investor Flight and Trump’s Fed Criticism
The US dollar has dropped to a three-year low as investors retreat from American assets.
Market jitters intensified after former President Donald Trump launched another scathing attack on Federal Reserve Chair Jerome Powell, labelling him “Mr. Too Late” and “a major loser” while ramping up pressure for immediate interest rate cuts.
The dollar has fallen to its weakest level against a basket of major currencies since March 2022.
Dollar Hits Seven-Month Low Against Yen Amid Renewed Trump-Powell Tensions
The US dollar has fallen to a seven-month low against the Japanese yen, slipping to ¥140 for the first time since last September.
Tensions between Donald Trump and Federal Reserve Chair Jerome Powell have once again rattled markets. In a recent post, Trump declared, “Powell’s termination cannot come fast enough.”
Tony Sycamore, market analyst at IG, noted that Trump’s ongoing attacks on Powell are eroding market confidence. “Their relationship has long been fraught,” he said.
Although Trump appointed Powell in 2017, he has repeatedly criticised him since, blaming the Fed chair for “bad decisions” and calling him “always too late and wrong.”
Powell, in contrast, has pushed back against Trump’s economic narrative, warning that tariffs championed by the former president could drive inflation higher and slow economic growth.
On Monday, while European markets were closed for the Easter holiday, Wall Street endured further losses. The Dow Jones Industrial Average dropped another 2.5%, shedding nearly 1,000 points.
Pound Eyes Longest Winning Streak Against Dollar in Over 50 Years
Bloomberg reports that the pound is on track for its longest run of gains against the US dollar since 1971.
Sterling has climbed for 10 consecutive days, rising by around six cents since early April. If it extends its rally with an 11th straight gain today, it would mark the pound’s longest winning streak against the dollar in more than half a century.
