The dollar fell on Monday because the investors reacted to the growing uncertainty about American economic policy after the attack of the President Donald Trump at the President of the Federal Reserve Jay Powell.
The dollar has fallen to the lowest level in three years compared to the basket of its key trade partners. Gold grew on a new record of $ 3,385 per ounces, while the Swiss franc rose 1 percent compared to the dollar to 0.8069 SFR, ten-year highest value. And euro and yen strengthened over 1 percent in relation to the dollar.
American state debt is sold out. Yields on 10-year state bonds rose by 0.035 percentage points to 4.36 percent, while returns on 30-year government bonds increased by 0.065 percentage points to 4.86 percent. Bond yields move inversely with prices.
“What we see is the difference between currency and courses,” said Parisha Saimi, a foreign currency strategy for Asia in BNP Paribas, noting that usually a dollar and US government bonds are not selling at the same time. “Revelation growth in the USA and it also leads to a weaker dollar, which is not a typical relationship.”
“With the risk of a recession that now grows in the USA and with concerns about the tariff, global investors may question their portfolios,” Saimi said that euro and yen would benefit from investors in the homeland, seebiu.
“We noticed the recapture of dollars from the dollar inside Iflow,” said Wee Khoon Chong, a strategist in BNY, referring to the bank’s ownership data.
These moves were followed by Kevin Hassett, the director of the National Economic Council, said Donald Trump “would continue to study” the issue of dismissal of the President of the Federal Reserve Jay Powell. Trump argued on Thursday that he had the right to release Powell.
“If you think it’s unacceptable for President Trump to be frustrated by the Fed policy, then I think … You have to explain something.” HASSETT told reporters in Washington on Friday, when American markets were closed.
The moves during Asian trading on Monday are the first sign of the market reaction to its comments. Trading was poor in the region, and the markets in Hong Kong and Australia were closed due to the Easter holidays.
The reference values of the stock markets in Japan and Taiwan fell 1.4 percent, or 1.2 percent, while the Chinese CSI 300 rose 0.2 percent.
Futures for S & P 500 and Nasdaq fell by 0.8 percent.
Trump has repeatedly put pressure on Powell to reduce interest rates. Fed has been holding rates on hold this year so far after they dropped 2024 three times.
Federal reserves determine the monetary policy independently of other branches of government. Any attempt to overthrow Powell, whose term of office should end in May 2026, or the pressure on the monetary policy could cause further market turmoil in the US, the investors and analysts.
