Dollar Nears 3-Year Low Amid Mounting Political and Economic Tensions
The U.S. dollar continued its decline during Asian trading hours, edging closer to a three-year low as growing concerns over the independence of U.S. monetary policy and increasing political pressure on the Federal Reserve weighed heavily on investor sentiment.
The currency dropped near a 10-year low against the Swiss franc and hovered close to a three-and-a-half-year low against the euro. This weakness followed a series of aggressive public attacks from the U.S. administration targeting the central bank’s leadership, demanding immediate interest rate cuts to avoid a potential economic slowdown. The intensifying standoff has fueled market uncertainty and raised alarms about the future direction of U.S. monetary policy.
At the same time, trade tensions showed no signs of easing. China accused the U.S. of misusing tariffs and warned other nations against engaging in broader economic deals with Washington at Beijing’s expense, further escalating the ongoing trade conflict between the world's two largest economies.
Currency Highlights:
- The dollar held at 0.8095 Swiss francs, close to the previous session’s 10-year low of 0.8042.
- Against the Japanese yen, it stood at 140.99, nearing a seven-month low of 140.48.
- The euro remained steady at $1.1502, after briefly touching $1.1573—the highest since November 2021.
- The British pound traded at $1.3376, following a recent rise to $1.3421, its highest since September.
- The Australian dollar, a risk-sensitive currency, climbed to a four-month high of $0.6436 and remained close to that level.
The U.S. dollar index, which measures the greenback against six major currencies, steadied at 98.454 after slipping to 97.923 in the previous session—its lowest point since March 2022.
Lingering doubts over the future of the Fed’s policy path and the escalating political interference continue to cast a shadow over the dollar’s outlook. Without signs of stabilization—whether through market recovery or policy clarity—downward pressure on the U.S. currency may persist in the near term.
