Saturday, 13 September 2025
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--
Dollar close to multi-year lows vs euro, Swiss franc as Trump attacks the Fed
Tuesday, 22 April 2025 19:44 WIB | US DOLLAR |DOLLAR

The dollar dropped against the yen and hovered around multi-year lows versus the euro and the Swiss franc on Tuesday as President Donald Trump's attacks on the Federal Reserve raised concerns about the central bank's independence.

Analysts said the dollar was left in an especially fragile state amid market concerns over the U.S. administration's tariffs, which could trigger a global trade war.

Doubts about Fed independence threaten the dollar's value as a reserve currency, with analysts noting possible divestments from what many consider over-exposure to U.S. assets.

The U.S. currency accelerated losses after Thailand's prime minister said trade negotiations with Washington - scheduled to begin on Wednesday - would be postponed.

Trump ramped up his criticism of Fed chief Jerome Powell on Monday, calling him a "major loser" and demanding that he lower interest rates "NOW" or risk an economic slowdown.

On Friday, White House economic adviser Kevin Hassett said the president and his team were continuing to study whether they could fire Powell, who said last week the central bank can afford to be patient in judging how to set policy.

"The current worst-case scenario for the greenback is that Powell caves in and delivers an emergency rate cut, although that remains a low-probability event," said Francesco Pesole, strategist at ING.

"Removing Powell from office or his resignation would have similar market effects."

Money markets priced in a less than 10% chance of a Fed rate cut in May and 90 bps by year-end, roughly in line with the levels seen last week. IRPR

Barclays lifted its euro/dollar forecast to $1.15 based on the assessment of the removal of the Fed chair as a low-likelihood event, but argued that further revisions could therefore soon be needed should the situation escalate.

China on Monday accused Washington of abusing tariffs and warned countries against striking a broader economic deal with the United States at its expense.

The dollar was down 0.40% at 140.28 yen , after falling below the psychological 140 level for the first time since mid-September.

The greenback rose 0.30% to 0.8113 Swiss franc , not far from the decade-low 0.8042 reached in the previous session.

The euro fell 0.13% to $1.1498, after jumping to $1.1573 on Monday for the first time since November 2021.

"Underlying dynamics differ and the yen's rise looks more fragile than the euro's," said Shusuke Yamada, forex strategist at BofA Japan, after flagging that both currencies gained about 12% against the U.S. dollar.

"The yen's rise has accompanied a bigger rise in speculative positioning and increasing focus on a potential U.S.-Japan currency deal," while "structural outflows from Japan have gone out of market radar," he added.

While some analysts bet Washington will pressure Tokyo to help prop up the yen, Japan sees little scope for direct action.

The U.S. dollar index , which measures the greenback against six other major currencies, was up 0.10% at 98.41, after sinking as low as 97.923 in the previous session, a level not seen since March 2022.

Source: Reuters

RELATED NEWS
US dollar rises on positioning moves, but outlook remains bearish...
Saturday, 13 September 2025 02:08 WIB

The U.S. dollar rose on Friday, a day after falling on a surge in U.S. jobless claims and modest inflation, as investors expected the Federal Reserve to cut interest rates next week after a roughly ni...

Jobless Claims Surge, Dollar on the Brink...
Friday, 12 September 2025 09:05 WIB

The US dollar weakened on Friday after a surge in jobless claims and a moderate rise in inflation made markets increasingly confident that the Fed would cut interest rates next week—and possibly furth...

Dollar Sideways, CPI Risks Ahead...
Thursday, 11 September 2025 08:24 WIB

The US dollar held steady early in the Asian session after the PPI data fell 0.1% in August, reinforcing expectations that the Fed would cut interest rates next week. The Dollar Index edged up to 97.8...

Dollar Strengthens as Geopolitics Heats Up; Investors Await US Inflation Data ...
Wednesday, 10 September 2025 15:56 WIB

The US dollar held steady on Wednesday (September 10th) ahead of US inflation data this week that could help shape the Federal Reserve's policy outlook, while tense geopolitical conditions supported c...

Dollar Steadies Ahead of Inflation Data...
Wednesday, 10 September 2025 09:35 WIB

The dollar index held around 97.8 on Wednesday after firming in the prior session, as investors awaited key inflation reports that could influence the Federal Reserve's policy stance. The producer pr...

LATEST NEWS
EUR/USD steadies as Fed rate cut bets firm amidst US labor market concerns

EUR/USD remains steady during the North American session on Friday, poised to end the week with modest gains of over 0.18% as traders brace for the next week's monetary policy decision by the Federal Reserve (Fed). At the time of writing, the pair...

Bessent met with BlackRock's Rieder as search for next Fed chair continues

U.S. Treasury Secretary Scott Bessent met with BlackRock Inc executive Rick Rieder in New York on Friday, as the Trump administration continued its search for a new chair for the Federal Reserve, a source familiar with the matter said. Bessent has...

Oil gains weighed down by US demand worries

Oil prices rose on Friday after a Ukrainian drone attack suspended loadings from the largest port in western Russia, but gains were capped by concerns about U.S. demand. Brent crude futures settled at $66.99 a barrel, up 62 cents, or 0.93%. U.S....

POPULAR NEWS
IMF says Fed has scope to lower interest rates
Friday, 12 September 2025 01:38 WIB

The International Monetary Fund on Thursday said the Federal Reserve has scope to lower interest rates because of the weakening U.S. labor market,...

Fed seen on course for rate cuts after PPI data
Thursday, 11 September 2025 01:30 WIB

The Federal Reserve is likely to start a series of interest-rate cuts next week and keep going through the end of the year, traders bet on Wednesday...

Breaking News: US Annual PPI Inflation Falls to 2.6% in August, Compared to an Expected 3.3%
Wednesday, 10 September 2025 19:39 WIB

Producer inflation in the United States, as measured by the change in the Producer Price Index (PPI), fell to 2.6% annually in August from 3.3% in...

Breaking News: US CPI Inflation Rises to 2.9% in August, Matching Forecasts
Thursday, 11 September 2025 19:44 WIB

Annual inflation in the United States (US), as measured by changes in the Consumer Price Index (CPI), rose to 2.9% in August from 2.7% in July, the...