The dollar falls sharply on Monday as concerns rise over President Donald Trump’s push to reshape the Federal Reserve, raising questions about the central bank’s independence.
White House economic adviser Kevin Hassett confirms that the administration is exploring the possibility of removing Fed Chair Jerome Powell, following Trump’s public criticism and call for immediate rate cuts.
The dollar drops to a 10-year low against the Swiss franc, while the euro rises above $1.15. The New Zealand dollar climbs past the $0.6000 level for the first time in over five months. The dollar also weakens to a seven-month low of 140.615 yen.
Sterling reaches its highest level since September at $1.3395, and the Australian dollar hits a four-month high at $0.6430.
Against a basket of currencies, the dollar slides to a three-year low of 98.164. The New Zealand dollar gains more than 1% to $0.6013.
The onshore yuan strengthens to a two-week high before retreating slightly to 7.2904 per dollar, while the offshore yuan touches a one-week peak at 7.2835 per dollar.
Trading volumes remain low due to Easter Monday closures in most European, Australian, and Hong Kong markets. Meanwhile, China holds its benchmark lending rates steady for the sixth consecutive month, as expectations build for additional stimulus in response to ongoing trade tensions.
